Goods and Services Tax

Goods and Services Tax – Started By: – RAM SHARMA – Dated:- 2-9-2016 Last Replied Date:- 4-9-2016 – Dear Experts,We are manufacturer of exciasable goods and selling our goods through our various consignment agent in all over india against form F. We are providing 3% commission and freight to our consignment agent for selling our goods and availing service tax cenvat on such commission and freight up to the consignment agent warehouse. I would like to know your opinion in this regard after implementation of GST impact.Thanks & Regard – Reply By CS SANJAY MALHOTRA – The Reply = All forms i.e. C/D/E-1/F will be done away with in GST regime and the tax has to be paid in respect of supply to goods to own warehouse / sales through C&F ag

= = = = = = = =

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

= = = = = = = =

all undergo change/modifications. All have to wait till time a final law is enacted.. Thanks. – Reply By Ganeshan Kalyani – The Reply = Sir, IGST shall be payable by sending unit and the receiving unit shall be able to take credit by adjusting first against IGST payable followed by CGST and finally against SGST. The said sequence has been prescribed in the draft GST Law.Thanks – Reply By CA Surender Gupta – The Reply = The transactions between the principal and agent will be treated as separate would be chargeable to GST as per the proposed scheme. GST paid by the principal will be available to consignment agent / dealer as ITC and so no on subsequent sale. Therefore, it is bound that, the business strategy are going to change. The manufact

= = = = = = = =

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

= = = = = = = =

er to his branch in another State and the receiving location may sell those goods in the same month or by two or three months time depend upon the market demand. Generally looking into the need of that location stock transfer is taken place. But practically may take that much time in selling the goods in receiving branch state. Thus only when the goods are locally sold the Exchequer are getting the revenue. So there is a time gap from the date when goods are stock transfer and the date when actual sale is taken place. To bridge a gap and to prepone the tax collection Govt has come up which such provision where even stock transfer is taxes. This would make the authority to earn tax at the earlier time. Thanks. – Discussion-Forum – Knowledge

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – sandeep saini – Dated:- 2-9-2016 Last Replied Date:- 3-9-2016 – After a much awaited time period, now its matter of time, when GST is going to be a reality in India. The seriousness of the Government to implement GST, clearly appears from the passage of 122nd Constitutional Amendment Bill ( Constitutional Amendment Bill ) by both the houses of parliament i.e. Rajya Sabha as well as Lok Sabha. On the other hand, the States are also equally eager to implement GST as early as possible, and after the passage of Constitutional Amendment Bill, States are ratifying the same by holding the special sessions of their State legislative assemblies, and till now Assam, Bihar, Jharkhand, Himachal Pradesh, Chattisgarh has already ratified the Constitutional Amendment Bill. Therefore, we should not hessitate to appreciate the efforts of both Central Government and State Governments to implement the GST from April 1, 2017. However, once the Constitutional Amendment

= = = = = = = =

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

= = = = = = = =

tes i.e. the Finance Minister of the Centre and the Finance Ministers of the States, so it will not be easy for the Centre or the States to ignore its recommendations without any strong reason. Composition of GST Council: The GST Council shall consists of following members: Union Finance minister, who will be Chairperson of GST Council; Union minister of State incharge of Revenue or Finance; The minister incharge of Finance or Taxation or any other minister nominated by each State Government and they will choose one among themselves to be the vice chairperson of the council for a particular period. Subject matters on which recommendations will be made by GST Council: The GST Council shall make the recommendations to the Union and the States on the following subjects: GST rates, cesses and surcharges levied by the Union, States and Local bodies which may be subsumed in the GST; Goods and Services exempted from GST; Model GST Law which is put on public domain on June 14, 2016, will be an

= = = = = = = =

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

= = = = = = = =

taken together shall have a weightage of 2/3rd of total votes cast. Approval of any decision by the GST Council: In GST Council, every decision shall be taken, when it is approved by at least 75% of the weighted votes of members present and voting. From the above voting pattern, it appears that it will not be possible for the States to take any decision against the will of Centre, since the Centre has 33% votes and to get any decision passed, 75% votes are required, which is possible only when centre supports that particular decision. In the similar way Centre cannot take any decision which is opposed by States. Challenges before GST Council: The GST Council has to face challenges while taking the given below decisions: Computation of compensation in lieu of revenue loss to the States, since losses are going to be notional in nature, so it becomes important to laid down a transparent and detailed method to calculate the compensation, which is to be provided to States for initial five y

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 1-9-2016 Last Replied Date:- 3-9-2016 – Supply- Taxable Event under Model GST Law-Inclusive and Subjective With step-by-step progress towards Goods and Services Tax ( GST ), the Country is all set to witness the biggest indirect tax reform of unmatched importance in independent India. GST would mark a paradigm shift in the indirect taxation of our Country and the concept of origin based taxation as practiced currently, would no longer be there. In line with the global practices, concept of destination based taxation would usher in under GST. At the same time, 17 of the major taxes levied under the Indirect taxation i.e. Central Excise, Service tax, VAT/CST etc., would be subsumed under the ambit of GST, resulting in change of the taxable event as well. Taxable events in present indirect tax regime Determination of the taxable event in any tax law is of utmost significance as the levy of tax is based on occurrence of that event.

= = = = = = = =

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

= = = = = = = =

cluded goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)…………. Customs Duty Goods imported into, or exported from, India Section 12 of the Customs Act, 1962 (1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, on goods imported into, or exported from, India…… CST Sale of goods in the course of Inter-State trade Section 6 of Central Sales Tax Act, 1956 (1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notific

= = = = = = = =

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

= = = = = = = =

important in determining the taxability of all transactions, whether commercial or otherwise under GST regime. Section 3 of the Model CGST/SGST Act, 2016 [also applicable for the Model IGST Act vide Section 2(f) thereof] specifies the meaning and scope of the term supply, broadly, in the following manner: Broad Category Sub- section of Section 3 Particulars 1 Supply includes: Normal supply of goods and/or services 1(a) All forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Import of service 1(b) Importation of service, whether or not for a consideration and whether or not in the course or furtherance of business. Supply Without consideration 1(c) A supply specified in Schedule I (Matters to be treated as supply without consideration), made or agreed to be made without consideration. Supply of goods v/s Supply of services

= = = = = = = =

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

= = = = = = = =

randed service by an aggregator, as defined in sec 43B, under a brand name or trade name owned by him shall be deemed to be a supply of the said service by the said aggregator. Inclusive definition of term supply Despite being the first step for taking off under GST regime, the Model GST Law has chosen to define supply in an inclusive manner, without even defining what supply actually means. Thus, the proposed definition of the term supply under the Model GST Law suffers from ambiguity as it starts with the word Supply includes…. . It is crucial here to note that the term includes is generally used to expand the meaning of the former word. Even, the wide import of term includes has been settled in number of judicial pronouncements to establish that its usage expands the meaning. In the case of Doypack Systems (Pvt) Ltd. Vs. Union of India [ 1988 (2) TMI 61 – SUPREME COURT OF INDIA], the Hon ble Supreme Court has interpreted the meaning of the term includes , as It is well settle

= = = = = = = =

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

= = = = = = = =

ial definition in crystal and definitive manner. Here, it would not be out of place to look at the meaning of term supply, as adopted in the other countries like Canada, Malaysia where GST is applicable. Under Canadian Goods & Services Tax supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, or other disposition . Similarly, under Malaysia Goods & Services Tax, where GST made applicable with effect from April, 2015, Section 4 thereof defines supply as subject to subsections (2) and (3), supply means all forms of supply, including supply of imported services, done for a consideration and anything which is not a supply of goods but is done for a consideration is a supply of services.….. Keeping in mind, the importance the term supply would entail in GST, the term supply could have been defined in exhaustive manner to ensure the boundaries restricting any sort of wide interpretation of the

= = = = = = = =

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

= = = = = = = =

t consideration , which are as under: • Permanent transfer/disposal of business assets. • Temporary application of business assets to a private or non-business use. • Services put to a private or non-business use. • Assets retained after deregistration. • Supply of goods and/or services by a taxable person to another taxable or non- taxable person in the course or furtherance of business.But, this will not cover goods sent for job work. Perusal of the above provisions reveals that the government wants to levy tax on each and every transaction entered by a taxable person and don t want to leave any room for charging GST. Even any business assets/ services used for private/ non-business use, shall also be treated as supply. This can be best understood with a simple example of a Company providing mobile phones to its employees, which are used for making business calls and personal calls as well. Since, use of mobile phones for making personal calls would be exigib

= = = = = = = =

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

= = = = = = = =

d GST regime, that would be the centric point to determine levy & collection of GST. Knowingly or unknowingly, the Model GST Law has sown the seeds for another series of fresh litigation, which the present indirect taxation is crippled with, when it comes to determining the test of manufacture for levy of Excise duty or rendering of services to levy Service tax. The law is striving hard even as on date to settle down after several decades of jurisprudence. It would indeed be quite interesting to watch how the term supply is re-defined, amended, explained, substituted in the Final GST Law, keeping in mind the long trodden path so far. – Reply By Ganeshan Kalyani – The Reply = Sir, article is very nicely written. Sir, abroad there is single GST concept whereas we are going to have dual GST. State will have power on State GST. In such situation it would be challenging for GST Council to advise for administration. Thanks. – Reply By KASTURI SETHI – The Reply = Sir, I think administrati

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – manohar singh – Dated:- 29-8-2016 Last Replied Date:- 4-7-2017 – i want to purchase machinery from other state, should i buy the machinery before gst is implement or after gst is implement. – Reply By Rajagopalan Ranganathan – The Reply = Sir,The provisions of GST Act is yet to be finalised. Therefore non comments can be offered on your query. – Reply By KASTURI SETHI – The Reply = Sh.Manohar Singh Ji, If you can wait for, better option is to purchase the machinery after implementation of GST, especially, in view of expected reduced rate of GST as compared to the present one. Most probably, GST will be implemented from 1.4.17 but there is remote possibility that date can be extended to 1.7.17. – Reply

= = = = = = = =

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

= = = = = = = =

is good enough but the date of implementation is not sure. Sir, today if you do interstate purchase, then against Form C you will be paying 2% CST , Excise duty @12.5% and entry tax (depend upon the State, say 4%). Total tax is 18.5%. Out of which cenvatable is 16.5% or 12.5% (without entry tax credit). In GST the rate of 18% was suggested but now again it is debated to keep somewhere around 21% to 22%. If you purchase in GST, then IGST @ 21% or 22% would be liable to be paid. You will get full credit on intra state sale. However, as suggested by Sri Sanjay Sir the call is supposed to be taken by the management. The market and profit which you may foresee today may yield you more profit rather than waiting for GST and meantime learn that yo

= = = = = = = =

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

= = = = = = = =

ter is that we have only almost made provisions in our Constitution for levying GST, the further path is a long way ahead.A pragmatic business man does not and should not be swayed by this hype. After all, what you pay as taxes would certainly be allowed to be set off against your tax liability.regardsabhishek p – Reply By Sahadev Maity – The Reply = Dear experts,I am going to start a new factory, for the I need to buy some machineris from outer state of Rs around 30lacs. Previous CST was 2% but now GST is 18% on purchase of machinery. So kindly advice me, can I avail the GST credit on purchase of that machinery if yes then how?I would be very grateful to u all.Thanks & regards,sahadev Maitymob-9654621194 – Reply By KASTURI SETHI – The

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 29-8-2016 – The Union Finance Minster Shri Arun Jaitley said that many Indian States are growing at the rate of 10-11 per cent and the trade dialogue between the States and the US investors and companies can help in giving boost to the bilateral trade between India and US. He said that the Central Government has created a National Infrastructure Invest Fund (NIIF) in which various U.S. based insurance and pension funds, endowment funds can invest especially in infrastructure sector which has great potential in India. The Finance Minister was speaking when the United States Secretary of Commerce, Ms. Penny Pritzker and Director of the National Economic Council Mr. Jeffrey Zients called on him in his of

= = = = = = = =

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

= = = = = = = =

resolved or narrowed down to a large extent. He said that CEOs of various Indian companies are in constant dialogue with their US counterparts for increased trade and investment among the two nations. Earlier, the U.S. Secretary of Commerce, Ms Penny welcomed the approval of GST Bill and hoped that this will boost the economic activities in the country at large. She suggested that the trade dialogue by the State Chief Ministers with different US authorities can be given a structured shape in order to give impetus to the bilateral trade. She expressed hope that there is great potential to increase the bilateral trade among the two nations. She said that US wants to institutionalise the trade relations between the two countries to give it im

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – pravin bansal – Dated:- 27-8-2016 Last Replied Date:- 28-8-2016 – Dear sir, Pl give me the status of foodgrain pulses and oilseeds and other agriculctur prouct in GST – Reply By Ganeshan Kalyani – The Reply = Sir, there is no clarify as regard the schedules and tax rate of the product. Thanks. – Reply By KASTURI SETHI – The Reply = Sh.Bansal Ji, One has to wait for till the enactment of GST. So many changes are taking place. Conferences and seminars are be

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 26-8-2016 Last Replied Date:- 31-8-2016 – The GST Bill – The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 has been discussed and passed by Rajya Sabha on 3rd August, 2016 after a 7 hours long debate by members of Rajya Sabha. The discussion on the GST bill came after months of discussions between the ruling party and the opposition – with both sides meeting multiple times to negotiate amendments. The momentous Bill, which marks the first parliamentary step towards implementation of a one country, one market, one tax framework, was cleared by a two-thirds majority, which is required for any Constitution Amendment Bill, following a division of votes. In th

= = = = = = = =

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

= = = = = = = =

xes collected by Union shall be distributed between Union and States The lower house (Rajya Sabha) too approved the revised Bill on 8 August, 2016 after changes were approved by Rajya Sabha. The Bill has been passed unanimously and the journey to GST from now onwards will inter alia, involve the following steps – At least half the state assemblies, that is 15, would need to ratify the Bill by two-thirds majority. It will then go for presidential assent before being notified in the gazette After all these legal procedures, Parliament would take up the actual CGST and IGST Bills (possibly in the winter session). Passage of SGST law by State Legislative Assemblies Formulation of GST rules by Union and States and notification thereof GSTN Netwo

= = = = = = = =

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

= = = = = = = =

ial to success of GST. Moreover, lot of fine-tuning is required in the provisions of model law in respect of compounding, thresholds, aggregate turnover, supply, place of supply, valuation, input tax credit etc. – Reply By Ganeshan Kalyani – The Reply = Nice article thanks. – Reply By Dr. Sanjiv Agarwal – The Reply = Your nice words are always an encouragement and motivation – Reply By satbir singh wahi – The Reply = Nice Sir . THks ,Keeping us update on GST. – Reply By Manoj Kasture – The Reply = Thanks Sir. Can someone challenge Constituional Amendment ? If yes, what basis? RegardsManoj – Reply By shankar narayanan – The Reply = Very Nice Article. Written in simple language for the benefit of all (including Non Tax Person) also can unders

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Where supply of goods without transfer to title has to be treated as service, whether on importation of such goods i.e. deemed services, customs duty and GST would be levied simultaneously? – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – chandan jha – Dated:- 24-8-2016 – Taxable Event under GST. What is Taxable Event.? (a) Taxable:- Liable to be taxed; subject to tax. (b )Event: – A thing that happens or takes place, especially one of importance. (Source :- Oxford Dictionary) Taxable event: – A taxable event is any event or occurrence that results in a tax liability. Normally taxable event means occurrence creates or attracts the liability to be fixed. Tax can be imposed only on taxable event. Taxable event under GST. Tax will be levied when supply of Goods and/or services. Time of supply of goods and/or services is more important under GST. Hence the word supply is more important. Consideration is not mandatory for supply. Meaning of Supply. (a) Supply :- A stock or amount of something supplied or available for use. (b) Sale :- The exchange of a commodity for money; the action of selling something. (Source: – Oxford Dictionary) section 4(1) of the Indian sales of goods act. Sales

= = = = = = = =

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

= = = = = = = =

behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply. (3) Subject to sub-section (2), the Central or a State Government may, upon recommendation of the Council, specify, by notification, the transactions that are to be treated as- (i) A supply of goods and not as a supply of services; or (ii) A supply of services and not as a supply of goods; or (iii) Neither a supply of goods nor a supply of services. (4) Notwithstanding anything contained in sub-section (1), the supply of any branded service by an aggregator, as defined in section 43B, under a brand name or trade name owned by him shall be deemed to be a supply of the said service by the said aggregator. Definition of Supply is inclusive . Hence any supply of goods or services would get cover, even if not specified in this section. As per above discussion Supply does not need Consideration. Free supply of goods and service can be subject to GST. i.e. Stock transfer, branch transfer

= = = = = = = =

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

= = = = = = = =

osal of business Assets :- Sale/ discard or otherwise without consideration. Temporary application of business assets to a private or non-business use :- Such as Business car, plant, building use for personal, partner, director, etc. Services put to a private or non-business use :- such as telephone, other services provided to proprietor, partner, director, etc. Assets retained after deregistration: – if taxable person de-registered, he will be liable to pay GST. But if transfer of business as a going concern, then it will not be supply. As per schedule II Supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course or furtherance of business: – this will be cover like sample, gift, etc. Provided that the supply of goods by a registered taxable person to a job worker in term of section 43A shall not be treated as supply of goods. Section 3(2) 1. Transfer (1) Any transfer of the title in goods is a supply of goods. (2) Any transfer of goods

= = = = = = = =

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

= = = = = = = =

al is a supply of goods by the person. (2) Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services. (3) Where any goods, forming part of the business assets of a taxable person, are sold by any other person who has the power to do so to recover any debt owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or furtherance of his business. (4) Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable Person, unless- (a) The business is transferred as a g

= = = = = = = =

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

= = = = = = = =

ii) A chartered engineer registered with the Institution of Engineers (India); or (iii) A licensed surveyor of the respective local body of the city or town or village or development or planning authority; (2) The expression construction includes additions, alterations, replacements or remodeling of any existing civil structure; (c) Temporary transfer or permitting the use or enjoyment of any intellectual property right; (d) Development, design, programming, customisation, adaptation, up gradation, enhancement, implementation of information technology software; (e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; (f) works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (g) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and (h) Supply,

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Meaning and scope of supply under GST (Part 2) – Import of services will be treated as supply and will subject to GST under reverse charge. – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Meaning and scope of supply under GST (Part 1) – Since CGST, SGST or IGST will be levied on supply of goods or services, it is important to understand this term first – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Dated:- 23-8-2016 – Section – 003 – Meaning and scope of supply MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 As per Section 3(1)(b) importation of services for any purpose, have included within the meaning and scope of the term Supply It is for the obvious reason that, importation of goods are subject to Customs Duty since the same would be crossing the Custom Borders Physically, but services may not be subject to crossing of customs barriers, GST will be levied on reverse charge on such services. But, since importation of services would be subject to GST under the reverse charge method, what will happen to the goods brought to India under the terms and agreement of right to use. Whether such importation would be subj

= = = = = = = =

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

= = = = = = = =

of services are falling with the scope of section 3(1)(a) of GST law, the same will be exempt from the duties of customs. On the contrary, there may be an exemption under the GST laws so that where import of services have suffered duties of Customs, the same will be exempt from GST on importation from the reverse charge mechanism. Exemption from Reverse Charge Further, as per section 9(3)(c), import of services for personal use upto a specified value be allowed to imported without levying GST. Though the scope of Section 9(3)(c) covers only taxable person. Therefore, the question arises whether non-taxable person will be allowed to avail the similar exemption? The answer according to the opinion of the author is that, where Government woul

= = = = = = = =

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

= = = = = = = =

Dated:- 23-8-2016 – Section – 003 – Meaning and scope of supply MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 Sub Section (1) states that:- Supply includes (a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, (b) importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and (c) a supply specified in Schedule I, made or agreed to be made without a consideration. Accordingly: – Whereas clause (a) covers all transactions where consideration is there, any free supply / without consideration i

= = = = = = = =

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

= = = = = = = =

Service Tax – Whether the vessels or ships that are afloat are not goods and immovable property? – CESTAT says Yes. – Whether GST would be applicable on sale / supply of floating vessels or ships? – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Dated:- 23-8-2016 – Commissioner of Central Excise And Service Tax (LTU) , Mumbai Versus The Shipping Corporation of India Ltd. – 2016 (8) TMI 852 – CESTAT MUMBAI The issue though has been discussed in the context of Service Tax but has far reaching implications. One of the reasons given by the Hon'ble tribunal (third member) while ascertaining the nature of transaction for the purpose of service tax is, 29 Not to be overlooked also is the performance of service on goods or equipment with goods having the specific import supra. It may not be entirely correct in describing a ship or vessel as equipment though equipment may be fitted on board rendering the ascertainment thereof by the original authority to be that much more complex. It i

= = = = = = = =

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

= = = = = = = =

ceans and the seas are equivalences of land and the inextricability of a vessel or ship from the waters should bring them within the ambit of immoveable. Ships before launch and for breaking up are goods but vessels or ships that are afloat are not goods except for the time that they are the subject of a sale agreement. That ships, vessels and motor vehicles need not exclusively be goods is also apparent in section 2 of Customs Act, 1962; they could also be conveyances. As conveyances, ships/vessels and motor vehicles move easily on water or land but, not being goods that are amenable to severance from land/water, are not distinguishable from immoveable property. Consequently, the legislative intent to tax repairs or maintenance of convey

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 23-8-2016 – A meeting was held under the Chairmanship of Revenue Secretary Dr Hasmukh Adhia to review the IT preparedness of the various stakeholders for smooth roll-out of Goods and Services Tax (GST). In the said meeting representatives of Reserve Bank of India (RBI), Principal CCA, Central Board of Excise & Customs (CBEC), Heads of Government Business and IT Heads of 29 Banks and Goods and Services Tax Network (GSTN) took part. Realizing the critica

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Udaya Kiran – Dated:- 23-8-2016 Last Replied Date:- 11-9-2016 – Hello Sir,We have a business of booking rice mill machinery, Manufactured by X Company, to rice millers in Andhra Pradesh for which the X company pays commission to me. After GST, can we continue as it is or is it necessary that we purchase from X company and sell it to rice millers.Thank you. – Reply By KASTURI SETHI – The Reply = Sh.Udaya Kiran Ji, After the implementation of GST, the concept of Service will not abolish. It is subsumed into GST. In my view, it will continue. – Reply By Udaya Kiran – The Reply = Dear Sir,Thank you for the reply. – Reply By CS SANJAY MALHOTRA – The Reply = I fully endorse the views of Sh. Kasturi ji. Taxa

= = = = = = = =

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

= = = = = = = =

Finance Secretary (FS) inaugurates the Training Program on Government E-Marketplace (GeM) for Government Users; FS: Training will enable the Government Procurement Officers to make best use of new technologies to procure goods and services in a more transparent, accountable and efficient manner. – News and Press Release – Dated:- 22-8-2016 – Press Information Bureau Government of India Ministry of Finance 22-August-2016 16:17 IST The one-day hands on training program for Procurement Officers of the Central Government Ministries/Departments was inaugurated here today by Shri Ashok Lavasa, Finance Secretary, Government of India. The training program has been jointly organized by DGS&D, National Institute of Financial Management (NIFM) and

= = = = = = = =

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

= = = = = = = =

ame ease and efficiency that is presently offered by e-commerce sites. He wanted that such training programme should be taken seriously and more and more officers should be trained including the State Governments. The Finance Secretary requested the GeM team to make efforts to continuously improve the GeM portal and ensure that it remains free from manipulation and any unethical practices. Shri Lavasa also stated although it has been made mandatory on GeM to make payment to the vendors within 10 days of receipt of goods/services, efforts should be made to further reduce this time span as time is money and ultimately the cost of delayed payment is born by the Government. GeM has a potential to grow and will bring in a lot of credibility and

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – esha agrawal – Dated:- 20-8-2016 Last Replied Date:- 22-8-2016 – Hello everyone coming with another article on GST, a very hot topic in discussion now a days , here is a gist of GST with meaning of some important terms which will help readers to understand the definitions properly and help practising chartered accountants to deal their clients efficiently in the matter of GST You all must have heard so many information on the Goods and Services Tax. Some are saying GST will take away the cascading impact of taxes and some are saying GST is one nation, one rate . Firstly GST will not reduce the amount of tax you pay, but it will make it less tiresome to pay and collect. GST is about fewer taxes, at unified rate, as we all know that the taxes are levied both by central and state government in indirect taxes in different level like vat , service tax, excise duty etc, what GST will do is to sweep ( subsume ) many indirect taxes into a single label. As

= = = = = = = =

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

= = = = = = = =

d from taxes due on final product, but this exists in name only because so many taxes like central sales tax, additional excise and customs duty, luxury tax, to name a few – are not eligible for such set-offs, As a result, both producers and sellers end up paying taxes on the same inputs over and over again. It should be thanks that in case of GST there is no concept of input tax credit all taxes are summed up and GST is you pay just once for. Now here is the meaning of some basic terms in GST like What does the word GOODS means in GST Goods means all kinds of movable properties (which can be moved as such without any dismantling) (only tangible) eg:- visualize, marker, exercise machine, fan etc INCLUDING securities, growing crops & grass, things attached to or forming art of the land e.g. electricity pole etc EXCLUDING money, Actionable claim What does the word SERVICES means in GST ANYTHING OTHER THAN GOODS i.e. Do something or not to do something (like non competence contract, c

= = = = = = = =

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

= = = = = = = =

ansferred then it is called supply of service In case of business assets if it is permanent transfer then it is called supply of goods, but if temporary transfer then it is called supply of services, if sold by third party (bank) then supply of goods by the person In case of Immovable Property If there is Renting/ Leasing of immovable property then it issupply of service If sale of under construction property then also it is supply of service In case of Intangible Property (IPR) Intangible property is either temporary or permanent transfer in both the cases it is supply of service In case of software If the software is customised then it is supply of service But if the software is readymade then it is supply of goods Goods on which 100% Exemption is there in GST ROTI :- flour, pulse, rice, milk, cereals, poultry etc KAPDA:- textile MAKAN:- renting for residential/ construction for one family SHIKSHA:- playway to XII- approved degree, diploma SWASTHYA:- health care- diagnose, treatment

= = = = = = = =

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

= = = = = = = =

n act. Thanks. – Reply By esha agrawal – The Reply = There is no such notification this I have written just to make understand readers easily – Reply By KASTURI SETHI – The Reply = Nicely explained by both experts i.e. Sh.Ganeshan Kalyani Ji and the author. – Reply By swaminathan venkataraman – The Reply = Wprt : In case of Immovable Property If sale of under construction property then also it is supply of – GOODS AND service – ( envisaged to be rolled into one, though). To note the words in FONT; see : SCHEDULE II MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES …….. If so care and interested, for individual's own and the common good, look up and give further thoughts to the canvassed viewpoints against the constitutionality /propriety of the proposed levy as shared, with reasoning, on Facebook /Linkedin, also elsewhere in public domain. – Reply By KASTURI SETHI – The Reply = Respected Madam,Will it be compulsory for all i.e. manufacturer, wholesale dealer and retailer to

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 19-8-2016 – Continuing with its commitment to the early and smooth roll-out of the Goods and Services Tax (GST) and recognizing the role of trade and industry as equal partners and stakeholders in this historic reform, both Department of Revenue and Central Board of Excise and Customs (CBEC) are holding interactive sessions, spread over three days starting from yesterday i.e. 17th August, 2016, with representatives of the various sectors of the economy. Revenue Secretary Dr Hasmukh Adhia along with senior officers of the Department of Revenue and CBEC held meetings with representatives of IT and ITES and Transport Sector yesterday and with the representatives of e-commerce and Communications today. Se

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 19-8-2016 Last Replied Date:- 19-8-2016 – Dear Professional Colleague, The long-delayed Constitution (122nd Amendment) Bill, 2014 on GST ( 122nd CAB or GST Bill ) has finally got the nod of the Rajya Sabha on August 3,2016, with the Government successfully stitching together a political consensus on the GST Bill, to pave the way for much-awaited roll out of the landmark tax reform that will create a common market of 1.25 billion people.GST, is the biggest indirect tax reform since independence, is aimed at dismantling Inter-State barriers to trade in goods and services by subsuming a slew of around 17 indirect taxes viz. Excise Duty, Service Tax, VAT, CST, Luxury tax, Entertainment Tax, Entry Tax, Octroi, etc. The Rajya Sabha has unanimously passed the ambitious GST Bill as amended with over 2/3 majority. The motion for the constitutional amendment for the GST Bill has been passed with 197 Ayes. It was crucial for the critical

= = = = = = = =

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

= = = = = = = =

roposed in the GST Bill to enable implementation of GST. These proposed amendments importantly includes dropping of 1% additional tax on Inter-State Sale of goods and a definite provision in the statute for 100% compensating the States for any revenue loss for 5 years, amongst others. With these official amendments, the Government partially met the demands of the Congress party which has been blocking the bill in the Rajya Sabha and this enabled the 122nd CAB to finally see the light of the day. We are summarising herewith key amendments to the GST Bill, which was circulated to Rajya Sabha members on August 2, 2016, for easy digest: Dropping 1% Additional taxon Inter-State supply of goods: It is proposed to delete the provision under Clause 18 of the GST Bill. Clause 18 of the GST Bill:The 122nd CAB proposes for levy of an Additional tax, not exceeding 1%, on Inter-State supply of goods in the course of Inter-State trade or commerce. It is proposed that such Additional tax would be lev

= = = = = = = =

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

= = = = = = = =

od which may extend to five years, based on the recommendations of the GST Council. This implies that Parliament may decide to provide compensation to States and may also decide the time period for which it can provide such compensation, which may extend to five years. Proposed amendment:The Parliament shall, by law, provide for compensation to States for any loss of revenues arising on account of GST, for a period which may extend to five years, based on the recommendations of the GST Council. This implies that the Parliament must provide compensation and compensation shall be provided for a maximum time period of five years. Recommendation of the Select Committee, 2015:The Committee felt that there is no justification for substitution of the word may with shall . It, however, recommended that compensation should be provided for whole period of 5 years and accordingly proposed amended Clause 19 as follows: 19. Parliament may, by law, on the recommendation of the Goods and Services Tax

= = = = = = = =

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

= = = = = = = =

ment) Bill, 2011. Other changes: Integrated Goods and Services Tax ( IGST ) Clause 9: Apportionment of IGST i.e. Article 269A: It has been clarified that the States share of the IGST shall not form a part of the Consolidated fund of India. Clause 12: IGST term to be replaced with GST on suppliesin the course of inter-state trade or commerce: Under Clause 12 of the GST Bill, it was mentioned that the GST Council would make recommendations on the apportionment of the IGST. Since, the term IGST was not defined,it has been proposed to replace this term with Goods and Services Tax levied on supplies in the course of inter-state trade or commerce under article 269A . Inclusion of CGST and IGST in tax devolution to States It has been proposed that under Clause 10 of the GST Bill, CGST and the Centre s share of IGST will be distributed between the Centre and States. Clause 10 of the GST Bill: The GST collected and levied by the Centre, other than States share of IGST, (CGST and Centre s share

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 18-8-2016 Last Replied Date:- 18-8-2016 – With a strong pitch for one nation one tax , the Hon ble Finance Minister, Shri. Arun Jaitley presented, on August 8, 2016, in the Lok Sabha, the Constitution (122ndAmendment) Bill, 2014 on GST ( 122nd CAB or GST Bill ), which was passed by the Rajya Sabha on August 3, 3016 with certain key amendments, that enables the GST in the country. The Lok Sabha has unanimously passed the GST Bill with all 443 members present in the Lower House of the Parliament voting in favour of the Bill, ratifying earlier nod by Rajya Sabha members. However, AIADMK leader P. Venugopal staged a walk-out unhappy with the clarifications presented by Finance Minister, Shri. Arun Jaitley on the GST Bill. GST can't be seen as a victory of a party or government, it is victory for democratic ethos of India and a victory for everyone, Hon ble Prime Minister, Shri. Narendra Modi said. The Prime Minister promised fr

= = = = = = = =

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

= = = = = = = =

tee of Rajya Sabha which had submitted its Report on 122nd CAB on July 22, 2015. The GST Bill was introduced in Rajya Sabha in May last year where it has been pending because of consensus to be emerged between ruling and opposition party over certain provisions viz. Dropping of 1% additional tax on Inter-State sale of goods, Capping of GST rate in 122nd CAB, Forming of dispute resolution authority. The key to forging consensus was the amendments the National Democratic Alliance (NDA) effected in the GST Bill, a copy of which was circulated among Rajya Sabha members on August 2, 2016, which importantly includes, dropping of 1% additional tax on Inter-State Sale of goods and a definite provision in the statute for 100% compensating the States for any revenue loss for 5 years, amongst others. Since there were key amendments in the original draft of the GST Bill that was passed in the Lok Sabha last year, the GST Bill is, once again, sent back to the Lok Sabha, which has finally been passe

= = = = = = = =

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

= = = = = = = =

es. Passage of the 122nd CAB in the Parliament is being seen as a big victory for the Narendra Modi government. The next big challenge for the government is to get the States on board and get rest of the process going as quickly as possible to meet the deadline of implementation of GST by April 2017. These steps would require a lot of time, patience and constant deliberations both at the States and Central Government level along with substantial engagement with the industry bodies, traders, service providers and almost every local trade bodies and associations. The GST roll-out deadline of April 1, 2017, is certainly stiff. But it's still better to have a deadline Shri. Arun Jaitley, Finance Minister Video presentation on key aspects of Model GST Law: Watch the video presentation on Draft GST Law – Levy, Taxable Event: Supply, Taxable Person, Composition Scheme at https://www.youtube.com/watch?v=XrWHZMZf8GQ to enrich knowledge regarding the key takeaways of the Model GST Law and th

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – CA Alkesh Kasliwal – Dated:- 13-8-2016 Last Replied Date:- 10-7-2017 – My Query is thatMany of the manufacturing unit get exemption by State Govt. of VAT And CST under industrial Promotion Policy 2014 in Madhya Pradesh for Five from the date of Commencement of production of New unitsSo my query is that whether the same exemption is also available for the aforsaid entity or not Please clarify.. As soon as possible – Reply By Rajagopalan Ranganathan – The Reply = Sir,It all depends on the provision of GST law to be enacted, rules to be framed under the law and Notifications to be issued under the law and the rules. Therefore it is too early to advise that the exemptions granted under exisisting law will

= = = = = = = =

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

= = = = = = = =

s given under VAT regime. Even earlier when Sales tax was changed to VAT the exemption made available were continued upto the period of eligibility. Thanks. – Reply By YAGAY AND SUN – The Reply = Such State specific industrial promotion scheme shall be ended and refund mechanism after payment of GST will come into picture. – Reply By Ganeshan Kalyani – The Reply = Sir, agreed but those companies which have already invested huge capital and the Govt. Has already given them exemption for a particular period. I guess these exemption shall continue until such period. However I agree that those are planning to invest in GST regime the exemption shall not be given. Thanks. – Reply By KRT MOTORS – The Reply = as an end user and the valid gst tax p

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 13-8-2016 Last Replied Date:- 18-8-2016 – After 25 years India started walking on the road to economic reforms and as India marches towards introduction of GST in 2016-17 in 70th year of its independence, we may liberalize ourselves from the clutches of multiplicity of taxes levied by both, centre as well as states. However, the GST which is proposed in the current form is a combination of three types of taxes- Central GST, State GST and Integrated GST. There cannot be a better way to celebrate India's independence. The dream to have GST in India may soon be a reality now. The month of August once again became historic after August of 1947 when India attained independence from British raj. August 2016 created a historic achievement once again as India march ahead on the road to fiscal freedom on tax front as 122nd Constitutional Amendment has been approved by both the houses of Indian Parliament i.e, on 3rd August 2

= = = = = = = =

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

= = = = = = = =

56) Service Tax (1994) and a host of state levied taxes including Value Added Tax (VAT). GST aims at subsuming many multiple taxes presently levied by Central and State Governments with the objective to follow one nation – one market – one tax policy and scrap the cascading effect of taxes on cost i.e. payment of tax on taxes. GST would therefore, bring in economies of scale, operational efficiency, lower cost of production and benefits accruing to consumers. GST is expected to change the way businesses are done, provide host of opportunities to professionals, reduce corruption and consumer will eventually benefit. Constitutional Amendment The Constitution (122nd Amendment) Bill, 2014 as amended has now been passed by both the houses of Parliament in August, 2016 – on 3rd August by Rajya Sabha and on 8th August by Lok Sabha ( and that too unanimously in both houses). The major amendments made in the original Constitutional Amendment Bill while passage thereof include the following : Th

= = = = = = = =

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

= = = = = = = =

tainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling. However, it will have to be ensured by the GST Council that states should not levy new taxes in future (unless there is a emergency) to complicate the taxes again over a period. We should not have a sequel of GST like GST-2 after a decade or so. This is important as centre has agreed to compensate the states for any revenue loss arising out of GST. Also, there is a need to discourage local bodies to levy taxes. Their fund requirements may be met by States. Benefits of GST The benefits of GST accruing to various stake holders can be summarized as under: For business and industry Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. woul

= = = = = = = =

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

= = = = = = = =

f locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost. For Central and State Governments Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far. Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders. Higher revenue efficiency: GST is expected to decrease the cost of collection of tax reve

= = = = = = = =

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

= = = = = = = =

levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. Input Tax Credit The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit between CGST and SGST would be permitted. However, IGST can be set off against IGST, CGST and SGST. GST Preparedness Preparedness for GST in next few months will involve Tax Planning Review, Transactions Review, Training Manpower, Cost Effectiveness in Inventory, logistics & Final goods, business Planning with anticipation of new tax structure with competition, Fastest Implementation & Transition to GST, Procurement and Purchase Orders Implementation, Invoicing Patterns, Proper Implementation of GST Transition in input stage credit, tax management versus business op

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 13-8-2016 Last Replied Date:- 11-5-2017 – Editorial Note Model GST law has provided special procedure for removal of goods from principal manufacturer to job worker and return from job worker to principal manufacturer subject to certain conditions and limitations. This article aims at enlightening readers about the provisions related to job work. Introduction The definition of supply is very wide and had covered almost all sorts of transactions within its ambit. Material sent for job work is also covered under supply. Hence, GST would be payable on material sent for job work. However, law has kept this special transaction into consideration while drafting and thus it provides for special procedure for removal and receipt of goods sent on job work. Meaning of Job work Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression job worker shall

= = = = = = = =

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

= = = = = = = =

ker to another job worker without payment of duty. Time limit for receipt of goods back from job worker Section 43A which provides for special procedure for removal of goods on job work does not specify any time limit for receipt of goods back However, another provision contained in clause 16A specifies time limit for receipt of goods. Accordingly, inputs should be received back within the period of 180 days of receipt of goods by job worker. Further, this time limit in respect of capital goods is 2 years. Treatment to goods received back from job worker After completion of job-work, Principal may either (a) bring back such goods to any of his place of business, without payment of tax, for supply therefrom on payment of tax within India, or with or without payment of tax for export, as the case may be, or (b) supply such goods from the place of business of a job-worker on payment of tax within India, or with or without payment of tax for export, as the case may be. Direct dispatch from

= = = = = = = =

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

= = = = = = = =

work, are received back by him within one hundred and eighty days of their being sent out: The principal shall be entitled to take credit of input tax on inputs even if the input are directly sent to a job worker for job-work without their being first brought to his place of business, and in such a case, the period of one hundred and eighty days shall be counted from the date of receipt of the inputs by the job worker. Input tax credit of capital goods sent to job worker – The principal shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax on capital goods sent to a job-worker for job-worker for job-work if the said capital goods, after completion of job-worker for received back by him within two years of their being sent out. The principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job-work without their being first brought to his place of busi

= = = = = = = =

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

= = = = = = = =

an sent material for job work without payment of excise duty. As per Model Law if inputs or/ and semi-finished goods were sent for job work prior to introduction of GST law and were lying with the job worker, declaration shall be submitted by both manufacturer and job worker within specified period. The goods can be brought back to place of Principal manufacturer within six months without payment of tax. However, this period of six months can be extended by Commissioner for period of two months. If the material is not returned within six months (or further two months if extension is granted), tax will be payable by job worker or manufacturer. Transitional provisions in respect of finished goods sent for test purpose As per Model Law if finished goods were sent out for test or further process prior to introduction of GST law and were lying outside, these can be brought back within six months from date of commencement of GST law. The finished goods can also be supplied directly on paymen

= = = = = = = =

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

= = = = = = = =