Goods and Services Tax

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 21-3-2017 Last Replied Date:- 6-10-2017 – SirWhat is the process we shall follow in a case when a new place of business is established after GST migration? – Reply By MARIAPPAN GOVINDARAJAN – The Reply = If the new place of business is in the other State you have to obtain separate registration. If it is within the State no separate registration is required. In my view you can add the new establishment in the Registration certificate. – Reply By Ramaswamy S – The Reply = Under the GST, One state one registration. If the new premises is within the same state, then the new premises is to be added as additional place of business in the GST.The process is similar to the curren

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in application form in common portal of GSTN. Any well conversant computer operator can do this. Thus your additional place of business will be on the records of the department. There is no problem in amending registration certificate whenever there is any change . – Reply By MARIAPPAN GOVINDARAJAN – The Reply = If you get a registration in the GST Regime and if you want to establish a new place of business which is of same nature or incidental there to, then you can add the new place of establishment as additional place of business by amending the registration certificate. – Reply By Nagaraj Dalabhanjan – The Reply = May i know what is the time limit for adding additional place of business in same state?And the option for adding changes (

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er In Gujarat. I would like to Add Their Ahmadabad Freight. As Additional Place Of Business. When I login To GST portal. My Profile Says NA. Where do I get that updated. If someone can please help me with this one. My GSTIN is Registered in Gujarat Itself. – Reply By Hasmukh Patel – The Reply = Till date We can not amend registration for additional place of business even if it is under rule. Pls. login GST PORTL and try for add new location.You can't do it. – Reply By Amit Bansal – The Reply = HiI have heard #apob can be added in Gst by a manual process. Can anyone help me this case.Regards – Reply By JSW CEMENT LIMITED – The Reply = Additional place of business can be added in the core field amendment option now. – Reply By Hasmukh Pat

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Finance Act – Goods and services Tax Rules, 2017 (GST Rules) – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 20-3-2017 – The GST law will be the biggest reform in the area of Indirect Taxes in the history of independent India The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved the following four Goods and Services Tax (GST) related bills: 1. The Central Goods and Services Tax Bill 2017 (The CGST Bill) 2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill) 3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) 4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill) The passage of these four GST related bills will pave the way for the biggest reform in the area of Indirect Taxes in the history of independent India.

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lp in the realization of the objective of One Nation, One Tax and improve the Ease of Doing Business climate in the country. It will also indirectly benefit the common man by reducing the tax burden especially on the daily consumer items of the common man. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. It is expected that the implementation of the Goods and Services Tax law will lead to an increase in Gross Domestic Product (GDP) of the country by 1-2%. This in turn will lead to the creation of more employment and increase in productivity. The GST regime will bring in more transparency and efficiency with the m

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Central Excise – Started By: – venkat eswaran – Dated:- 20-3-2017 Last Replied Date:- 23-3-2017 – DEar all,our is a MRP based valuation in Central excsie pmt after rebate of some % on MRP we paying excise duty. In GST how this is to be treated. Whether the same MRP based valuaiton is continued in GST also?Kindly share your views on thisThanks in advanceVenkat – Reply By MARIAPPAN GOVINDARAJAN – The Reply = This has not been dealt with by model laws. – Reply By MANISH SINHA – The Reply = Sir,The

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Goods and Services Tax – GST – Dated:- 20-3-2017 – The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following four GST related bills: 1. The Central Goods and Services Tax Bill 2017 (The CGST Bill) 2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill) 3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) 4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill) The above four Bills have been earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings of the Council held in the last six months. The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for b

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Goods and Services Tax – GST – By: – Mr. CS SANJAY MALHOTRA – Dated:- 20-3-2017 Last Replied Date:- 25-3-2017 – Reply By Ganeshan Kalyani – The Reply = Thanks for sharing the procedure. It is very useful. Thanks. Though the GSTN had requested to do enrolment before 31.01.2017, most of the assesses are still waiting to complete their enrolment due to various reasons. In some state the department has yet to issue login credential to the assesse. The J&K has not yet started the process. Though there is no revised timeline given, the assesse need to understand that Government may at anytime declare last day for enrolment and complying after that time would lead difficulty. Hence enrolment to be carried out at right time. – Reply By KASTUR

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 18-3-2017 Last Replied Date:- 3-4-2017 – No specific list of accounts or record has been prescribed in Section 53 of GST Law. It only talked about the true and correct accounts of production or manufacture of goods, inward and outward supply of goods and /or services, accounts of stock of goods, record of input credit availed and output tax payable or paid. Accounts and other Record Every registered taxable person shall maintain at his principal place of business [as mentioned in the certificate of registration] the following record Accounts of production or manufacture of goods Record of inward and outward supply of goods and / or services Record of stock of goods Record of in

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Every owner or operator of warehouse or godown shall maintain record of consigner, consignee and all other relevant details of the goods as prescribed whether person is registered or not. Period of retention of accounts Every RTP shall keep the record of all books of accounts and other record and shall retain the same until the expiry of 60 month from the due date of furnishing the annual return . Example : Record of FY 2017-18 shall be retain till 31.12.2023. Provided that where RTP is in appeal, revision or any other proceeding before any appellate or tribunal or court , whether filed by him or by department, or under investigation of offence , shall retains the books for period of one year after the disposal of such proceeding or the pe

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Goods and Services Tax – GST – By: – Anuj Bansal – Dated:- 17-3-2017 Last Replied Date:- 3-4-2017 – The concept of Input Tax credit has always been an issue to look into for the industry. The industry has huge expectations and there are a lot of eyes on how the concept of Input Tax Credit related to goods and/or services and matching mismatching concept of input tax credit will be dealt with in the GST regime. Let us discuss whether GST has something to cherish about or not. The eligibility and conditions for taking input tax credit are discussed under Sec 16 of the revised Model GST Law. The section broadly talks about the conditions, circumstances and ways through which the assesse can claim input tax credit under the GST regime. There are certain conditions which the assessee needs to fulfill in order to avail the input tax credit. One of the important condition provided in Sec 16(2)(c) states that:- The tax charged in respect of such supply has been actually paid to the account of

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is mentioned in their respective returns and a mismatch report is generated. The buyer can view the report on the website of department immediately after filing of Annexure by corresponding sellers. In case there is any mismatch in the reports i.e. let say selling dealer has shown lesser amount of sales but the Buying Dealer shows the correct amount of purchases. Thus, Buying Dealer has claimed more input and he will be penalized for no default on his part. However, in reverse case i.e. Selling Dealer having shown more amount of sales and the purchase amount being correctly entered by the Buying Dealer, the mismatch report will be generated without any penalty being levied on buyer. However, under Service Tax Laws there is no such provision or mechanism in law to check whether tax paid by the receiver of services is duly deposited by the provider of services or not. In order to have control and avoid leakage in flow of credit the Government has introduced the concept of matching and mi

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again and accordingly his output tax liability shall be reduced which was added earlier in his return. Any interest paid earlier shall also be refunded to the purchasing dealer. However, no provision is mentioned in law for any interest to be refunded for the period when such output tax liability was wrongly charged from the purchasing dealer till the date of refund. Case 2:- Where reduction of output tax liability exceeds the corresponding reduction in claim for Input Tax credit i.e. in case the credit note issued by the selling dealer is not correspondingly recorded by the purchasing dealer in his return then such discrepancy shall be communicated to both such persons in the manner as may be prescribed. Now two situations may arise:- If it is not rectified by the purchasing dealer in his valid return for the month in which the discrepancy is communicated shall be added to the output tax liability of the selling dealer along with that he shall be liable to pay interest from the date o

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nnual return for F.Y. 2016-17 whichever is earlier, It is important to note that in case such period passes away then no such rectification is allowed and input tax credit related to them will be lost. This mechanism of matching mismatching seems to be highly automated and thus all the returns of selling dealer as well as purchasing dealer will be linked with each other, so that any change on one side will be correspondingly reflected on the other side. Therefore, both the seller as well as purchaser is required to be very careful in filing the returns and in uploading sale / purchase details. Even a slight mismatch in the details will lead to unnecessary demands and may also lead to litigation for recovery of tax. In the whole process, it may be observed that Government is at no loss. Whatever deposit is made by the seller would be available to the purchaser and in case of mismatch Government will immediately recover the output tax from the purchaser. It is also required to have a clo

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 17-3-2017 Last Replied Date:- 28-3-2017 – Appointment of GST Officers Section 5 of Model GST Act, 2016 ( Act for short) provides for appointment of officers under the CGST. The Board may appoint such persons as it may think fit to be officers under the Act. The Board may authorize a Principal Chief Commissioner/Chief Commissioner of CGST or a Principal Commissioner/Commissioner of CGST or an Additional/Joint or Deputy/Assistant Commissioner of CGST to appoint officers of CGST below the rank of Assistant Commissioner of CGST. Powers of CGST officers Section 6 of the Act provides that subject to such conditions and limitations as the Board may impose, a GST officer may exercise the powers and discharge the duties conferred or imposed on him under the Act. He may exercise the powers on any other CGST officer who is subordinate to him. The Commissioner may, subject to such conditions and limitations as may be specified in

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spect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner of the operator of warehouse or godown or any other place. Section 79(2) provides that where the officer concerned, either pursuant to an inspection carried or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings are secreted in any place, he may authorize in writing any other officer to search and seize or may himself search and seize such goods, documents, books or things. Power to arrest Section 81 gives powers to Commissioner to arrest any person. Section 81(1) provides that if the Commissioner has reason to believe that any person has committed an offence as detailed below- supplies any goods and/or services without issue of any invoice or grossly misdeclares the description of the supply on invoice, in violation of the provisions o

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ions of the Code of Criminal Procedure, 1973 relating to arrest. Power to summon persons to give evidence and produce documents Section 82 provides that any CGST officer, duly authorized by the competent authority in this behalf, shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. Access to business premises Section 83 provides that any CGST officer authorized by the Additional/Joint Commissioner of CGST shall have access to any place of business of a registered taxable person to inspect books of account, documents, computers, computer programs, computer software, whether installed in a computer or otherwise, and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of

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Electricity under GST – Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 16-3-2017 Last Replied Date:- 18-3-2017 – Whether power is exempted under GST or taxable? – Reply By Ramaswa

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 16-3-2017 – How the liabilities in respect of Tax , interest, penalty and other dues under the GST shall be paid, have been summarized hereunder. How the same shall be entered in various register etc. All this is prescribed in Section 44 and Section 45 of the revised GST Law and GST Payment Rules ,2016. Payment of Tax , Interest , Penalty Every deposit made for tax , interest, penalty and fees shall be credited to Electronic Cash Ledger in Form-GST PMT-3. The input tax credit in the return of taxable person shall be credited to his Electronic Credit Ledger to be maintained as per Form -GST PMT-2. Amount deposited in Electronic cash ledger may be used for paying payment of tax,

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tax credit available in Electronic Credit Ledger of SGST can not be utilized for payment of CGST or vice versa. The balance in the cash or credit register after payment of taxes , interest and penalty or fees under the act may be refunded as prescribed under Section- 48 and the amount refunded shall be reduce from the respective ledger a/c. All amount payable by taxable person shall be debited in Electronic Liability Register in Form-GST PMT-1. Payment of every liability by registered taxable person shall be by debiting the electronic credit ledger and crediting the electronic liability register. Taxes, Interest , Fees and penalty shall be paid by taxable person in any of the following mode. Internet banking Debit or credit card NEFT or RT

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 16-3-2017 Last Replied Date:- 16-3-2017 – Introduction Chapter XX of the Model Goods and Services Tax Act, 2016 ( Act for short) provides for prosecution and compounding of offences. In this article the provisions relating to prosecution under this Act are going to be discussed. Section 92(1) provides the list of offences for which punishments is there and provides punishments according to the value involved in the offence. Section 93 provides about cognizance of offences. Section 94 provides the presumption of culpable mental state. Offences Section 92(1) of the Act provides the list of offences for which the person concerned is punishable under this Section. Whoever commits any of the following offence is punishable- supplies any goods and/or services without issue of any invoice or grossly misdeclares the description of the supply on invoice, in violation of this provisions of this Act, to intentionally evade tax; i

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th an intention to evade payment of tax due under this Act; obstructs or prevents any officer in discharge of his duties under this Act; acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reason to believe are liable to confiscation under this Act or the rules made there under; receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act or the rules made there under; tampers with or destroys any material evidence or documents; fails to supply any information which he is required to supply under this Act or the rules made there under or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or

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information which he is required to supply under this Act or the rules made there underor (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information. Subsequent commission of offence Section 92 (2) provides that if any person convicted of an offence under this section is again convicted of offence under this section, then he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to 5 years and with fine. In the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, the imprisonment referred in Section 92(1) and 92(2) shall not be for a term of less than six months. Cognizable offences Section 92(4) provides that the following offences indicated in Section 92(1)- supplies any goods and/or services without issue of any invoice or grossly misdeclares the description of the supply on invoice,

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wrongly taken exceeds ₹ 1 crore shall be cognizable and non bailable. The Commissioner concerned shall be the competent authority to take cognizance of the offence. Section 92(5) provides that a person shall not be prosecuted for any offence under this section except with the previous sanction of the designated authority. Section 93 provides that no court shall take cognizance of any offence punishable except with the previous sanction of the designated authority and no court inferior to that of a Magistrate of the First Class, shall try any such offence. Non cognizable offence Section 92(3) provides that notwithstanding anything contained in the Code of Criminal Procedure, 1973 all offences under this Act, except the offences referred to in Section 92(4) shall be non cognizable. Culpable mental state Section 94 provides that if any prosecution for an offence under this Act which requires a culpable mental state (it includes intention, motive, knowledge of a fact and belief in,

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-section (1) of section 76 of the Finance Act, as the case may be; Section 11AC(1)(a) provides penalty not exceeding ten per cent of the duty so determined or rupees five thousand, whichever is higher; Section 11AC(1)(b) provides the amount of penalty liable to be paid by such person shall be twenty-five per cent. of the penalty imposed, subject to the condition that such reduced penalty is also paid within the period so specified; In a case, where the CENVAT credit in respect of input or capital goods or input services has been taken or utilized wrongly by reason of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of the Excise Act, or of the rules made there under with intent to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of clause (c), clause (d) or clause (e) of sub-section (1) of section 11AC of the Excise Act. In a case, where the CENVAT credit in respe

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12th GST Council Meeting Dated:- 16-3-2017 GST Council – Minutes – Circulars – GST – Minutes of the 12th GST Council Meeting held on 16th March 2017 The twelfth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 16 March 2017 in Vigyan Bhavan, New Delhi under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2 . 2. The following agenda items were listed for discussion in the 12th Meeting of the Council 1. Confirmation of the Minutes of the 11 th GST Council Meeting held on 4 March 2017 2. Approval of the Draft Model SGST Law as modified in accordance with the decisions of the GST Council and as vetted by the Ministry of Law Justice, Government of Indi

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contribution of the outgoing Ministers in the Council's deliberations which the Council fully endorsed. Discussion on Agenda Items Agenda Item 1: Confirmation of the Minutes of the 11th GST Council Meeting held on 4 March, 2017: 4. The Hon'ble Chairperson invited comments of the Members on the draft Minutes of the 11th Meeting of the Council (hereinafter referred to as 'Minutes') held on 4 March 2017 before its confirmation. The Members suggested the following amendments to the draft Minutes. 4.1. The Hon'ble Minister from Jammu Kashmir stated that in paragraph 8.3 of the Minutes, in the second sentence, the expression 'Article 5 of the Constitution of Jammu Kashmir' should be replaced by the expression 'Section 5 of the Constitution of Jammu Kashmir'. The Council agreed to this suggestion. 4.2. Shri R.K Tiwari, Additional Chief Secretary, Uttar Pradesh stated that in paragraph 6.2.8 of the Minutes, the version of the S

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below: 5.1. In paragraph 8.3 of the Minutes, in the second sentence, the expression' Article 5 of the Constitution of Jammu Kashmir' to be replaced by the expression 'Section 5 of the Constitution of Jammu Kashmir'. Agenda Item 2: Approval of the Draft Model State Goods and Services Tax (SGST) Law as modified in accordance with the decisions of the GST Council and as vetted by the Ministry of Law Justice, Government of India: 6. Introducing this agenda item, the Secretary informed that the draft SGST Law was almost a replica of the Central Goods and Services Tax (CGST) Law, with some minor changes. He invited Dr. P.D. Vaghela, Commissioner, Commercial Taxes (CCT), Gujarat to briefly explain the changes in the SGST Law vis-a-vis the CGST Law. CCT, Gujarat explained that there were three major changes in the SGST Law as compared to the CGST Law, namely (i) the transitional provisions would be different in each State; (ii) Advance Ruling Authority would

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to the Minutes. The Secretary invited comments of the Members on the draft SGST Law circulated as an Agenda Note and the amendments proposed thereto as contained in Annexure- 3. 6.1. The Hon'ble Deputy Chief Minister of Delhi stated that in Section 67(1) of the draft SGST Law, it was provided that a proper officer not below the rank of Joint Commissioner could authorise inspection or search of a premise. He observed that this power should only vest with the Commissioner as otherwise, all officers of the rank of Joint Commissioner could exercise the power of inspection, search and seizure. The Secretary stated that this provision restricted the power to authorise inspection and search to an officer not below the rank of Joint Commissioner and this did not preclude this power to remain vested only with the Commissioner. Dr. Reeta Vasishta, Additional Secretary, Legislative Department, Ministry of Law explained that an officer below the rank of Joint Commissioner could not be des

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Section 5 of the Constitution of the State of Jammu Kashmir. He stated that on this account, if certain drafting changes were required in the SGST Law of the State of Jammu Kashmir, it would be done in consultation with the Council. The Hon'ble Chairperson observed that the SGST Legislation of Jammu Kashmir could be enacted by the Jammu Kashmir Legislature itself without reference to the Council and that their SGST Law would need to have a provision to integrate it to the GST process of the country. The Hon'ble Minister from Jammu Kashmir raised an issue that since the SGST Law of his State was to be enacted under its own Constitution, whether it could enact a more ambitious SGST Legislation, like including sectors such as real estate and power under their SGST Law. The Secretary observed that this would not be feasible as a seprate dispensation on real estate or power sector in the SGST Act of Jammu Kashmir would create problem in relation to operation of the IGST

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SGST Law with the changes as indicated in Annexure-3 of the Minutes (the changes as suggested in the meeting of the officers of the Centre and the States held on 16 March 2017 in New Delhi). The Council also authorised the Law Committee of Officers to make minor corrections and rectify typographical errors, wherever required, and that the revised draft SGST Law shall be shared with the States. The Council also agreed that the relevant GST Rule shall provide that, if so required, the Central Tax Administration would carry out audit and scrutiny of the departments of the Central Government which deducted tax at source under Section 51(1) of the draft CGST/SGST Law and similarly, the respective State Tax Administration would, if so required, carry out audit and scrutiny of departments of the concerned State Government. Agenda Item 3: Approval of the draft Union Territory Goods and Services Tax (UTGST) Law as vetted by the Ministry of Law Justice, Government of India 8. Intro

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ed any comment on the draft UTGST Law. The Council thereafter approved the draft UTGST Law along with the proposed changes. 9. For agenda item 3 , the Council approved the draft UTGST Law with the changes as indicated in Annexure-4 of the Minutes (the changes as suggested in the meeting of the officers of the Centre and the States held on 16 March 2017 in New Delhi). The Council also authorised the Law Committee of Officers to make minor corrections and rectify typographical errors, wherever required, and that the revised UTGST Law shall be shared with the States. Agenda Item 4.1: Amendments to the draft Integrated Goods and Services Tax (lGST) Law 10. Introducing this agenda item, the Secretary stated that certain changes were proposed in the draft IGST Law due to the strong concerns expressed by the Ministry of Commerce in respect of certain provisions of the draft IGST Law which could adversely affect the export competitiveness of the units working in Special Economi

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l Excise duty, Service Tax, Central Sales Tax and also from Value Added Tax in some States. He observed that in the IGST Law, the provision in respect of supplies to SEZs was to pay the tax first and to claim refund later. He added that the provision of refund, within seven days, of 90% of the amount of refund claimed was only provided for physical exports and was not available for supplies to SEZs. He further observed that the procedure of export under bond was not available for supplies from DT A to SEZs. He stated that due to such provisions, supplies from DT A to SEZ would be at a disadvantage vis-a-vis physical exports and as a result, SEZ units would be discouraged to source their raw material from DTA. He said that this would adversely affect the 'Make in India' campaign and would also be against the principle of ease of doing business. He therefore strongly suggested that supplies from DT A to SEZs should be treated at par with physical exports and both should be extend

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6 of the draft IGST Law where it was proposed to delete sub-Section 4 and to replace in sub-Section 3 the expression 'exporting goods and services or both' with the expression 'making zero rated supply'. He stated that some other small consequential changes were also suggested in sub-Section 3 of Section 16. 10.3. The Secretary stated that another concern in relation to exports that needed to be addressed related to cascading of input taxes for six products which were not under GST, namely the five petroleum products (petroleum crude, high speed diesel, motor spirit or petrol, natural gas and aviation turbine fuel) and alcoholic liquor for human consumption. He stated that the existing wording in sub-section 1 and sub-section 2 of Section 16 of the IGST Law gave the benefit of zero rating to only taxable supplies and thus exported petroleum products and alcoholic liquor would not be eligible to get refund of GST paid on the. inputs used in relation to such exported p

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et more business as compared to import. The Hon'ble Minister from Karnataka stated that GST was based on a seamless refund mechanism and if time-bound refunds were assured, the changes proposed for supply to SEZ were not required. He stated that the Council should not question the fundamentals of the efficacy of the refund mechanism under GST and the efficient functioning of the Goods and Services Tax Network (GSTN). He stated that an underlying tenet of GST was to get rid of the existing system of declarations, bonds, etc. and this should not be reintroduced for DT A supplies to SEZ. The Secretary pointed out that under the existing tax regime, goods could be bought from DT A for use in SEZ without payment of duty and that the new dispensation under GST should not be disadvantageous for supplies to SEZ. He observed that in order to avoid misuse and diversion of goods when supplied to SEZ, the principle to pay IGST first and then take refund was being introduced under the IGST Law

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at if such a dispensation was allowed for supplies to SEZs, other segments of business might seek a similar dispensation. He further observed that this issue had been debated several times in the Law Committee of Officers before the provision was drafted in the present form and that it should not be changed at this late stage. He suggested that this provision should be retained presently in the IGST Law, and in case it caused severe disadvantage to domestic suppliers, it could be amended later on and that such an amendment would be relatively easy to carry out as it was to be done only by the Parliament and not simultaneously by the State Legislatures. 10.6. The Secretary stated that one difference between the existing procedure and the procedure under GST would be that the existing Forms like I, H, C etc., were issued manually and this lent them to greater misuse whereas in the GST regime, there would be an all-India record of movement of goods through GSTN and that the Customs ICE

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after GST implementation if it caused a serious bottleneck. The Hon'ble Chairperson stated that it would not be advisable to discriminate between domestic supplies and imports to SEZs. 10.7 The Hon 'ble Chief Minister of Puducherry stated that exports through SEZs should be encouraged. He further stated that if a refinery was outside SEZ and they were given certain special facility, others would also claim the same. The Secretary stated that the facility of refund of input taxes on exported goods which were outside GST related to only 6 products and that, in the absence of such a provision, these goods would suffer loss of international competitiveness in the GST regime due to tax cascading. After further discussion, the Council approved the proposed changes to Section 16 of the draft IGST Law as contained in Annexure 5 of the Minutes. 10.8. The Secretary stated that as supply to SEZs was to be treated at par with physical exports, it would be desirable to carry out anot

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n 54(6) of the CGST Law, approved earlier by the Council in its 11 th Meeting (held on 4 March 2017), by replacing the word 'export' with the words 'zero rated supply'. Agenda Item 4.2: Approval of the amendments to the draft Goods and Services Tax (Compensation to the States) Bill, 2017 12. Introducing this agenda item, the Secretary informed that in light of the approval of the CGST Law and the IGST Law with certain changes by the Council in its 11 th Meeting (held on 4 March 2017), certain consequential changes were required in the Goods and Services Tax (Compensation to the States) Bill, 2017. He further stated that ceiling rates for imposition of cess were also to be provided in the Compensation Law and on this account, certain consequential changes were proposed to Section 8 of the Goods and Services Tax (Compensation to the States) Bill, 2017 and a Schedule of ceiling rates of cess was presented for the approval of the Council. The Hon'ble Chairper

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ted that for coal, lignite etc. the existing rate of clean energy cess of ₹ 400 per tonne had been retained because this rate was already quite high and any further increase would have negative effect on other sectors of the economy. He stated that for aerated waters containing added sugar, there was a large dispersion of VAT rates and for calculating the ceiling rate of cess, the average of the highest and the second highest rate of VAT was taken and this was added to the existing rate of Central Excise and then, like in other cases, 28% of GST rate was subtracted and an additional 25% was added as a cushion and the resultant rate of 13% was rounded off to arrive at the ceiling rate of 15%. He stated that for motor cars, the proposed ceiling rate (15% ad valorem) was arrived at by summing up the existing rate of Central Excise and the highest existing rate of VAT, subtracting from it the GST rate of28% and then adding to it an additional 25% as a cushion. He stated that another

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39;Bidi'. The Hon'ble Minister from Rajasthan stated that in his State, 'Bidi' was taxed at a rate of 65%. He observed that for 'sin' goods, there should be no special categorisation for poor people and that it was, in fact, more harmful for the poor people. The Hon'ble Chief Minister of Puducherry stated that the issue of employment was equally important. The Hon'ble Minister from Madhya Pradesh stated that he did not support the view of the Hon'ble Minister from Rajasthan. He observed that as 'Bidi' was a handmade product, it was a source of employment for a large number of people and that it was also smoked by the poor people. The Hon'ble Minister from Bihar stated that no cess be levied on 'Bidi' as it was a source of employment and also that it was smoked by poor people. The Hon'ble Minister from West Bengal pointed out that the Hon'ble Minister from Kerala had written a letter to the Hon'ble Chairperson pointing

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9; as it posed a health hazard though such a ban went against the livelihood interests of the areca nut farmers. He observed that it was wrong to give a favourable treatment to 'Bidi' vis-a-vis cigarettes on the ground that it was a poor man's 'puff as it caused greater harm than cigarettes. He observed that if a poor man got cancer due to his' Bidi' smoking habit, his family would be ruined as there was no social health care system for the poorer sections of the society whereas a cigarette smoker, being relatively better off, could still afford medical treatment for cancer. He warned that a huge burden was being cast on the poor man by allowing him his 'puff and that this burden finally fell on the society. He therefore suggested that the existing schedule covering both cigarette and 'Bidi' should be retained. 12.4. Shri P. Mara Pandiyan, Additional Chief Secretary, Kerala stated that the Hon'ble Minister from Kerala had written a letter dat

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stated that' Bidi' was actually tobacco wrapped in tobacco leaf and therefore it was doubly harmful. The Hon'ble Chairperson informed that the Central Government had power to levy Central Excise duty on 'Bidi' but due to considerations like large number of tobacco growers and workers involved in the 'Bidi' trade, during the last 8 to 9 years, it had refrained from imposing Central Excise duty on 'Bidi', though the Union Ministry of Health and the cigarette lobby had always argued for parity in the treatment of cigarette and 'Bidi' as the latter was equally harmful. He further stated that the decision to levy cess on 'Bidi' could be kept with the Council. The Hon'ble Minister from Assam stated that the enabling provision to levy cess on 'Bidi' should be retained in the law. The Hon'ble Minister from West Bengal reiterated that in the 4th Meeting of the Council (held on 3 and 4 November, 2016), it was decided to levy ce

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and wondered whether States could be given flexibility to keep different rates of tax on 'Bidi' in the GST regime. The Secretary observed that presently, the rate of Central Excise duty on 'Bidi' was ₹ 28 per thousand which translated to an ad valorem rate of 5% to 6% and that different States charged varying rates of VAT, for example Rajasthan (65%), Himachal Pradesh and Gujarat (22.5%), Tamil Nadu and Uttar Pradesh (14.5%) and Haryana (12.5%). He stated that the rate of tax on 'Bidi' and the issue of imposing cess on it could be addressed at a later date. The Hon'ble Minister from West Bengal suggested that the Council could take a decision to keep' Bidi' in the Schedule of cess but not impose any cess on it. The Hon'ble Minister from Karnataka stated that the Council should not arrive at any conclusion regarding leviability of cess on 'Bidi' at this stage. He stated that both awareness and the stick of taxation was required to co

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n of relevant Harmonised System of Nomenclature (HSN) Code created some confusion and suggested that the Entry should be limited to aerated water with added sugar. The Secretary stated that cess could be limited to aerated water with added sugar and no cess-be put on packaged water as people should be encouraged to drink clean water. Shri Arvind Subramanian, Chief Economic Advisor, Government of India suggested that cess should also be charged on mineral water but the Hon'ble Minister from West Bengal disagreed with this suggestion. 12.8. The Secretary suggested that in order not to levy cess on lemonade which was covered under the description of the 6-digit HSN Code of 220 12, the description under the relevant 8-digit HSN Code, namely 22021010 could be adopted which covered only aerated water. The Hon'ble Minister from West Bengal stated that no cess should be levied on soda water. The Hon'ble Deputy Chief Minister of Gujarat supported this suggestion and observed that

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cil agreed not to delete the Entries at Serial No.4 and 5 of the Schedule of rate for Cess. 12.10. The Hon'ble Deputy Chief Minister of Delhi observed that Entry at Serial No.6 of the Schedule was a residuary Entry excluding the products covered under Serial No.1 to 5 and, therefore, a more appropriate description for Entry under Serial No.6 would be 'Any other supplies' instead of the existing description 'All other supplies'. The Council agreed to the suggestion to change the description for Entry under Serial No.6. 13. For agenda item 4.2 , the Council approved certain additional changes to Goods and Services Tax (Compensation to the States) Bill, 2017 which was earlier approved by the Council in its 10 th Meeting (held on 18 February 2017) and also the Schedule of the rates of Cess to be part of the Goods and Services Tax (Compensation to the States) Bill, 2017. These approved changes are shown in Annexure-6 of the Minutes, subject to further modificat

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maintained check posts. He stated that MoRTH had requested to take up this agenda in order to work towards a complete, seamless and barrier free freight transport system across the country. He recalled that in the 11 th Meeting of the Council (held on 4 March, 2017), Ms. Sujata Chaturvedi, CCT, Bihar had also suggested to consult with MoRTH while developing the e-Way Bill System in the GST regime. He stated that this agenda item was only to seek the approval of the Council to set up a Task Force of officers from the State Government Departments like Indirect Tax, Road Transport, State Excise and the Union Ministry of Road Transport and Highways and the Department of Revenue. This Task Force of officers, after their deliberations, could make a presentation to the Council suggesting measures to achieve seamless transport connectivity across the country. He added that subsequently, if required, there could be a joint meeting of the Hon'ble Ministers of Taxation and Transport to delib

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rovide a mechanism for granting tax exemption to certain kinds of cinemas like educational cinema. Agenda Item 6: Date of the next meeting of the GST Council 17. The Hon'ble Chairperson observed with satisfaction that the five primary legislations, namely the CGST Law, the Model SGST Law, the IGST Law, the UTGST Law and the Compensation Law had been approved by the Council and that the next item of work would be to approve the GST Rules. The Secretary stated that earlier, five GST Rules were approved relating to Registration, Return, Payment, Refund and Invoice but due to changes made in the CGST, SGST and IGST Laws, these would require some amendments. He further stated that in addition, Rules on Input Tax Credit, Valuation, Composition and Transitional Provisions were being framed by the Law Committee of officers. On an enquiry by the Hon'ble Chairperson regarding the likely date for completing this task, CCT, Gujarat stated that these Rules were likely to be comple

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Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 15-3-2017 – GST is not just a tax reform but it is a business reform. It shall change the way in which business processes are performed and the way in which the business transactions are undertaken. Although, GST will bring with it, both positive and negative aspects. However, the organizations that will plan its business processes better in a manner to best suit the needs of the GST regime, then such organization will have competitive edge over others. Therefore, it is of due importance that business house proactively re-structure its business processes and optimize its tax position to reduce the negative impact of the changing tax environment. Procurements department plays a key role in any business set-up as they directly deal with the cost element. Apart from focusing on volumes and margin of sales, businesses also very keenly track the cost of procurements and efforts are always made to control the costs/ overheads.

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purchases being made from CST vendors as local VAT is not eligible as credit; Purchases being made locally only to avail local VAT credit. It is pertinent to note that above purchases were being made in the current regime to take the benefit of the present taxes. However, such benefits will not be available in the GST regime, therefore in all cases where currently procurement policy is driven by the tax implications, then all such procurements needs to be re-looked into for the other competitive sources. Purchase price/ cost It shall be very important for the businesses to strategies its procurement pricing and procurement cost based on the impact of GST. Below table determines the impact of procurement cost/ price on the purchases based on the various illustrative situations as under: Particulars Impact on purchase price/ cost There will be free flow of credits in the GST regime. Cascading of the taxes will reduce substantially in the GST regime. For instance, CST element is cost in t

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s. It helps to decide what to buy, when and from what sources. Most organizations spend around 20-60% of their money on the materials, supplies, capital equipment, technology, and services that are necessary to keep the enterprise running. Organizations need to transform their operations by aligning resources and technology and taxes thereon to enable organization to make the most cost effective purchases possible. Various elements of the purchase planning that needs to be looked into from GST point of view are as under: Change in EOQ levels, lead times, carrying costs etc. EOQ is the order quantity that minimizes the total holding costs and ordering costs. Under GST regime entire nation will become a one common market and in case the geographical location of the procurement undergoes a change then a corresponding change in the EOQ levels, lead times and the carrying costs must be planned and accordingly the promised delivery times to the customers must be changed. Revision in purchase

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revise the product costing to get better competitive price in the market to edge over others. Changing the purchase forecasts based on impact of GST on sale of a product or on the industry Organizations should consider the changing of the purchase forecasts based on impact of GST on sale of a product or on the industry in the following manner: If the prices of the products increases in the GST regime, the purchases should accordingly forecasted and procured in advance so that consistent survival in the market is possible. How the entire industry in which organization is carrying its operations is impacted due to GST and accordingly change the purchase forecasts. Timing of purchases to be re-visited especially during transitional phase The most important thing that the organizations can do during the transitional phase is timing of purchases. If the rate of GST is going to be high in GST regime when compared to present indirect tax regime then purchase can be pre-poned otherwise it can

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he same. Reduction in Purchases from CST vendors or other sources where credit not available Under GST regime transitional credit is available only when such credit is eligible in present regime and also GST regime as well. Since, CST credit is not eligible credit under present CST law, therefore the same is not eligible to be transferred into the GST regime. Hence, in such situations instead of procuring under CST, organizations may consider to reduce the purchases in the existing regime to the extent which will not affect the current sales. Procurement from un-registered vendor Procurement from unregistered vendors can have implications in the form of reverse charge liability which could have direct impact on the working capital. Therefore, businesses may have to avoid procurements from unregistered dealers especially in a scenario where the credit is not available. Advance payment to vendors Policy with respect advance payment to vendors have to be looked into. Currently, excise dut

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rchases. Managing procurement vendors As prices are expected to come down in GST regime, every customer would like to procure goods/services at a cheaper price. In this aspect, Purchase department of an organization has to be more proactive to manage their procurements/ suppliers better and to crack a better deal from their vendors. GST is nothing but an opportunity for the purchase department to enhance their vendors list and negotiate, this aspect is being discussed below in detail as under: Vendor masters updation, Tax master updation Once GST is implemented, the first and foremost important task is to update the vendor masters and tax masters with the additional information based on the structural changes and the tax changes performed by each businesses in the GST regime. Vendor Performance/ compliance It is very important that every supplier has to comply with GST, as the concept of compliance rating in the GST regime will be playing a crucial role. It not only defines the complia

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ness to follow up with the supplier for taking credits. Therefore, procurement department needs to assess their current vendors and the un-organised/ non-compliance oriented vendors must be trimmed down. Identifying multiple new vendors As GST is a united indirect tax and since it will change the entire dynamics of the businesses, therefore prices of almost all the businesses will undergo a change. Therefore, it gives an opportunity to the businesses consider entire nation as a common market and enhance the geographical purchase horizon and get the quotes multiple new vendors. Therefore, against the current practice of obtaining 3 or 4 quotations, business can identify multiple new vendors and get revised quotations from the existing vendors to obtain for a better and cheaper price at same quality in the GST regime. Conducting vendor education programmes for un-organized vendors Since GST involves compliance from both the supplier and the buyer, procurements from un-organized vendors i

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g information that needs to be updated in the vendor masters. An illustrative list of various information that needs to be immediately collected from the vendors is as under: Name of the Vendor; PAN of the Business; Provisional GSTIN No. in each supplying state; Details of Goods supplied & HSN Code; Software used by your organization for accounting purpose; Vendor IT readiness and support required if any; Understanding of the GST law – trainings Date of last reconciliation? Any open issue? Restriction on issuing of PO if above information not provided. Documentation As one of the criteria for allowing the credit under GST would be proper documentation on the basis of which credit is availed under earlier law. Ensuring that all the details of goods lying in the stock are collated in a master data with the documentary proofs capturing the details such as quantity, value at which such goods are procured, location at which such goods are stored and the amount of credit that is availed

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 15-3-2017 – In its 12th meeting of GST Council (GSTC) on 4th March, 2017, GSTC approved the two Bills, i.e. for Central Goods & Services Tax (CGST) and Integrated Goods and Services Tax (IGST) which now have to be passed and legislated by the Parliament. Two other GST Bills, i.e., State Goods and Service Tax (SGST) and Union Territory Goods and Services Tax (UTGST) are slated to be approved by the GSTC in its next meeting to be held on 16th March, 2017. While SGST will be required to be passed by each of the State legislature Assemblies, UTGST which will administer levy of GST in the Union Territories (except Pondicherry and Delhi) will have to be legislated by the Parliament. All these enactments shall be enforced from a common appointed date which has to be before 16 September, 2017. While approving the draft statutory provisions, GSTC has, inter alia, agreed to the following : Payment of Tax in Installments – In

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as more and more transactions are likely to take place in states territorial waters, especially in the context of increased exploration, drilling for petroleum products and development of new sea-ports in territorial waters. Enhanced peak GST Rate – Against the earlier agreed upon CGST peak rate of 14 percent (14% CGST and 14% SGST aggregating to 28%), GSTC has agreed to a higher ceiling of 20% CGST leading to an aggregate GST rate of 40% (20% CGST and 20% SGST). It is understood that for the present, peak GST rate will be 28% only but this enhanced limit is an enabling provision so that in future, Government does not look at Constitutional amendment whenever GST rates are thought of being increased. This may not be desirable from tax payers view point but at the same time, Governments would have to exercise due restraint from increasing the rates just to get more tax revenue. However, it has to be seen how GSTC will ensure that the decision to enhance GST rates are taken by Centre an

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e, but states had wanted the levy. Registration – A State-wise single registration for a taxpayer for filing returns, paying taxes, and to fulfil other compliance requirements. Most of the compliance requirements would be fulfilled online, thus leaving very little room for physical interface between the taxpayer and the tax official. A business entity with an annual turnover of upto ₹ 20 lakhs would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not taking registration is ₹ 10 lakhs. Return Filing – A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the country and p

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C accruing to him due to payment of IGST to discharge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Such payments are to be made in a pre-defined order. In the Services sector, the existing mechanism of Input Service Distributor (ISD) under the Service Tax law has been retained to allow the flow of ITC in respect of input serviceswithin a legal entity. In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course or furtherance of business, except on a few items listed in the Law. Other measures – To prevent lock-in of capital of exporters, a provision has been made to refund, within seven days of filing the application for refund by an exporter, ninety percent of the claimed amount on a provisional basis. In order to ensure a single administrative interface for taxpayers, a provision has been made to authorise officers of

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-3-2017 Last Replied Date:- 14-3-2017 – GST will be levied on supplies and not on sale or service. For the purpose of GST, supply shall include: all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business, Importation of service for a consideration, and Services have been specified in schedule I, which shall be considered as a supply even if made without consideration. The present taxable event under service tax is rendition of services which will no longer be relevant and only one event i.e., supply will be relevant for charge of tax. Supply has been defined in an inclusive manner. Tax is on supply of service, therefore, even the supply, as prescribed in Schedule-I, made without consideration will be taxable. In the present scenario, the services provided without consideration i.e., free services are not taxable. Transactions between

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es. Leased assets from outside India shall be subject to levy of IGST. In case of repossession of assets by banks / FIs / NBFC's, same will be treated as supply of goods in term of Schedule-II to the model GST law (version-II). Accordingly, any transfer of the title in goods is supply of goods. Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person. 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- (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is de

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r of the following events: Date of issue of invoice or on the last date on which invoice is required to be issued. Date on which bank receives payment with respect to such supply. As per place of supply provisions, if banks are required to pay tax on reverse charge basis, then time of supply shall be earlier of the following events: Date on which payment is made or Date immediately following sixty days from the date of issue of invoice by the bank / service provider Place of Supply As per section 9 of IGST law, the place of supply of banking and other financial services including stock broking services to any person shall be the location of the recipient of services on the records of the supplier, where the location of supplier of service and location of service recipient is in India. However, if the location of the recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services. Place of supply of services where the lo

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vy of taxes on real time basis based on address is not possible. In present regime, service tax is charged from account of the customer affecting such RTGS or NEFT on real time basis. Under GST, place of supply provisions provides solution to this issue. It provides for levy of tax in the State in which registered address of customer is mentioned in records (i.e., KYC documents) of the bank. The GST shall be levied on real time basis as in the present regime. Another issue for concern could be in case of multiple addresses for B2B transactions as to what shall be the place of supply. In such case, definition of 'location of recipient of services' shall provide for address of the recipient which shall be as under:- where a supply is received at a place of business for which registration has been obtained, the location of such place of business; where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 14-3-2017 Last Replied Date:- 14-3-2017 – Introduction In GST all the indirect taxes except customs are going to be subsumed. The Central Excise Act and State VAT Acts deals with the levy of tax on goods. Central Excise levies excise duty on the manufacture of goods and VAT Act levies tax on sales of goods. Therefore there is the possibility of searching by the officers of concerned authorities to intervene in the transit of the goods. If it is found there is any violation of the provisions of the Act or rules made there under then the officers concerned is empowered to seize the goods and on inquiry if it is confirmed the said goods may be confiscated. Once the goods are confiscated they are vest in the respective Government. Penal provisions will also attract for the same. Provisions for seizure and confiscation in the Act Section 90 of the Model Goods and Services Tax Act, 2016 ( Act for short) provides for confisca

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s does not come forward for payment of such tax and penalty; the proper officer detaining or seizing goods and/or conveyances shall issue a notice specifying the tax payable and thereafter, pass an order for payment of tax and penalty. Discharge Section 89(2) provides that on payment of the amount referred to in Section 89(1), all liabilities under Section 89 shall stand discharged in respect of such goods and such conveyance. Confiscation Section 90(1) provides that if any person- supplies or receives any goods in contravention of any of the provisions of this Act or rules made there under with intent to evade payment of tax; or does not account for any goods on which he is liable to pay tax under this Act; or supplies any goods liable to tax under this Act without having applied for registration; or contravenes any of the provisions of this Act or rules made there under with intent to evade payment of tax; or uses any conveyance as a means of transport for carriage of taxable goods i

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goods seized shall be released on a provisional basis upon execution of a bond and furnishing a security, in such manner and of such quantum, respectively as may be prescribed or on payment of applicable tax, interest and penalty payable as the case may be. Redemption fine Section 90 (2) provides that whenever confiscation of any goods or conveyance is authorized by this Act, the CGST/SGST officer adjudging it shall give to the owner of the goods or, where such owner is not know, the person from whose possession or custody such goods have been seized or the owner or the person-in-charge of the conveyance, an option to pay in lieu of confiscation such fine as the said officer thinks fit. Such fine shall not exceed the market value of the goods confiscated less the tax chargeable thereon. The aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under Section 89(1) of the Act. Where any such conveyance is used for the carriage of the goods or p

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f Police, on the requisition of such proper officer, shall assist him in taking and holding of such possession. Disposal of confiscated goods Section 90(7) provides that the proper officer may, after satisfying himself that the confiscated goods and conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose such goods and/or conveyances and deposit the sale proceeds thereof with the Government. Confiscation not to interfere with other punishments Section 91 provides that that no confiscation made or penalty imposed under the provisions of this Act or the rules made there under shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law. – Reply By Ganeshan Kalyani – The Reply = This is going to be a big concern for the assesse as both the government is going to interfere in a sin

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Goods and Services Tax – Started By: – Mukesh Agarwal – Dated:- 13-3-2017 Last Replied Date:- 13-3-2017 – Hi !I am a dealer /supplier dealing with army units. There is no fixed range or specific items . There are many items and depends on requirements and orders.What HSN Code should be selected in this case for GST MigrationThanks in advance. – Reply By YAGAY AND SUN – The Reply = Trader are facing this issue while enrolling on the GST website. You may fill 2-3 main Tariff Heading in the GST website by checking it on CBEC Website. Say articles of plastic comes under Chapter 39, Paper come under Chapter 48, Aluminium in chapter 76, Iron 73 etc. – Reply By YAGAY AND SUN – The Reply = FIRST SCHEDULEBasic Rate of duty / Classification / Tariff Items Chapter 01 Live animals Chapter 02 Meat and edible meat offal Chapter 03 Fish and crustaceans, molluscs and other aquatic invertebrates Chapter 04 Dairy produce; birds eggs; natural honey; edible products of animal origin, not else- where spec

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ates Chapter 17 Sugars and sugar confectionery Chapter 18 Cocoa and cocoa preparations Chapter 19 Preparations of cereals, flour, starch or milk; pastrycooks products Chapter 20 Preparations of vegetables, fruit, nuts or other parts of plants Chapter 21 Miscellaneous edible preparations Chapter 22 Beverages, spirits and vinegar Chapter 23 Residues and waste from the food industries; prepared animal fodder Chapter 24 Tobacco and manufactured tobacco substitutes Chapter 25 Salt; sulphur; earths and stone; plastering materials, lime and cement Chapter 26 Ores, slag and ash Chapter 27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Chapter 28 Inorganic chemicals, organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes Chapter 29 Organic chemicals Chapter 30 Pharmaceutical products Chapter 31 Fertilisers Chapter 32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigm

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eof Chapter 44 Wood and articles of wood, wood charcoal Chapter 45 Cork and articles of cork Chapter 46 Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork Chapter 47 Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard Chapter 48 Paper and paperboard; articles of paper pulp of paper or of paperboard Chapter 49 Printed books, newspapers, pictures and other products of the printing industry; manu- scripts, typescripts and plans Chapter 50 Silk Chapter 51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric Chapter 52 Cotton Chapter 53 Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn Chapter 54 Man-made filaments Chapter 55 Man-made staple fibres Chapter 56 Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof Chapter 57 Carpets and other textile floor coverings Chapter 58 Special wo

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al or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin Chapter 72 Iron and steel Chapter 73 Articles of iron or steel Chapter 74 Copper and articles thereof Chapter 75 Nickel and articles thereof Chapter 76 Aluminium and articles thereof Chapter 77 BLANK Chapter 78 Lead and articles thereof Chapter 79 Zinc and articles thereof Chapter 80 Tin and articles thereof Chapter 81 Other base metals; cermets; articles thereof Chapter 82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal Chapter 83 Miscellaneous articles of base metal Chapter 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Chapter 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles Chapter 86 Railway or tramway locomotives, roll

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Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 11-3-2017 Last Replied Date:- 13-3-2017 – Sir,It is stated that the Outward supplies of less that ₹ 2.5Lacs need not be uploaded line item wise and can be uploaded consolidated. if this is the case how can the invoice missed if any can be traced by the dealer who purchased the Goods for an amount of below ₹ 2.5 Lacs? – Reply By YAGAY AND SUN – The Reply = Line item wise means, Tariff Heading wise. Support if Invoice

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Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 11-3-2017 Last Replied Date:- 17-4-2017 – Sir,What is the position of the credit in case of Purchases in Transit (Including Import), stock with Depot and Stock Transfer which are in Transit on the appointed day? – Reply By KASTURI SETHI – The Reply = Dear Querist, Credit on purchases in transit on the appointed day would be allowed. Regarding the remaining points, no possibility of credit. However, any change in revised model GST Act can take place. Earlier, Sections were changed. So we will have to wait for the enactment of GST for authentic reply to every query on GST. – Reply By Ganeshan Kalyani – The Reply = Let us wait for final version of GST law. – Reply By YAGAY AN

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VAT and Sales Tax – Started By: – Aitha RajyaLakshmi – Dated:- 11-3-2017 Last Replied Date:- 13-3-2017 – Sir,What is the case if we find any Invoice missed in respect of our transactions in the uploaded details of the outward supplies of the Vendor from whom we have purchased?What is the consequence and what are the actions that we have to do? – Reply By YAGAY AND SUN – The Reply = You won't able to avail the Input Tax Credit and within 60 day you would have to reconcile it with your suppli

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 11-3-2017 – Public Servant Section 146 of Model Goods and Services Tax, 2016 ( Act for short) provides that all persons discharging functions under the Act shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code. Section 21 of the Indian Penal Code defines the term public servant as denoting a person falling under any of the descriptions as below- Every Commissioned Officer in the Military,Naval or Air Forces of India; Every Judge including any person empowered by law to discharge, whether by himself or as a member of any body of persons, any adjudicatory functions; Every officer of a Court of Justice (including a liquidator, receiver or commissioner) whose duty it is, as such officer, to investigate or report on any matter of law or fact, or to make, authenticate, or keep any document, or to take charge or dispose of any property, or to execute any judicial process, or to admini

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investigate, or to report, on any matter affecting the pecuniary interests ofthe Government, or to make, authenticate or keep any document relating to the pecuniary interests of the Govern­ment, or to prevent the infraction of any law for the protection of the pecuniary interests of the Government; Every officer whose duty it is, as such officer, to take, receive, keep or expend any property, to make any survey or assessment or to levy any rate or tax for any secular common purpose of any village, town or district, or to make, authenti­cate or keep any document for the ascertaining of the rights of the people of any village, town or district; Every person who holds any office in virtue of which he is empowered to prepare, publish, maintain or revise an elec­toral roll or to conduct an election or part of an election; Every person- in the service or pay of the Government or remunerated by fees or commission for the performance of any public duty by the Government; in the ser

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ed to be done in good faith under the Act or the rules. No departmental proceedings shall lie against any GST officer for passing any adjudication order or appellate order in good faith under the Act or the rules. Confidentiality of information Section 148(1) provides that all particulars contained in any statement made, return furnished or accounts or documents produced in accordance with the Act or in any record of evidence given in the course of any proceedings under the Act, other than proceeding before a Criminal Court, or in any record of any proceedings under the Act shall, save as provided in Section 148(4), be treated as confidential. GST Officer not to produce information Section 148(2) provides that notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall save as aforesaid, be entitled to require any GST officer to produce before it or to give evidence before it in respect of particulars as referred to in Section 148 (1). Particulars not applicable

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other law for the time being in force authorizing any such authority to exercise any powers there under; or to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by the Act; or where such particulars are relevant for the purpose of any inquiry into the conduct of any GST officer, to any person or persons appointed as inquiry officer under any relevant law; or to an officer of the Central Government or any State Government as may be necessary for the purpose of enabling that Government to levy or realize any tax or duty imposed by it; or when such disclosure is occasioned by the lawful exercise by a public servant or any statutory authority, of his or its powers under any law for the time being in force; or relevant to any inquiry into a charge of misconduct in connection with any proceedings under the Act against- a practicing Advocate; tax practitioner; a practicing cost accountant; a practicing chartered accountant; a practicing company secre

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 11-3-2017 Last Replied Date:- 30-12-1899 – GST Council has approved a Bill for compensation to States for revenue loss arising out of introduction of GST in the country. A Bill called Goods and Services Tax (Compensation to the States for Loss of Revenue) Bill, 20… shall provide for compensation to the States for loss of revenue arising on account of implementation of the goods and Service Tax for a period of five years as per section 18 of the Constitution (101st Amendment) Act, 2016. This will extend to whole of India and shall come into force from a date to be notified. Highlights of Compensation Bill are as follows : Provides for revenue loss compensation to States for five years Nominal growth rate projected revenue has been decided @ 14% Base year to be financial year 2015-16 Revenue will be the sum of revenue collected by the State and local bodies during the base year, taxes levied by the States or Centre net

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te or Centre, net of refunds, with respect to the following taxes imposed by the respective State or Centre, which are subsumed into goods and services tax: Value Added Tax (VAT), sales tax, purchase tax, tax collected on works contract, or any other tax levied by the concerned State under the erstwhile Entry 54 of List-II (State List) of the Seventh Schedule to the Constitution, prior to bringing into effect the provisions of the Constitution (101st Amendment) Act, 2016.; Central Sales Tax (CST) levied by the Central Sales Tax Act, 1956; Entry tax, octroi, local body tax or any other tax levied by the concerned State under the erstwhile Entry 52 of List-II (State List) of the Seventh Schedule to the Constitution, prior to bringing into effect the provisions of the Constitution (101st Amendment) Act, 2016; Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling or any other tax levied by the concerned State under the erstwhile Entry 62 of List-II (State L

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not be included in the calculation of the base year revenue for that State: Any taxes levied under any Act made under the erstwhile Entry 54 of List-II (State List) of the Seventh Schedule to the Constitution, prior to bringing into effect the provisions of the Constitution (101st Amendment) Act, 2016, on the sale or purchase of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption; Any taxes levied under the Central Sales Tax Act, 1956 on the sale or purchase of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption; Any cess imposed by the State Government on the sale or purchase of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption; and Entertainment tax levied by the State but colle

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inancial year during the transition period, as per the CAG audited figures of revenue collected, the excess amount so released shall be adjusted against the GST compensation amount payable to the State in the subsequent financial year. The total GST compensation payable for any financial year during the transition period to any State shall be calculated as follows: The projected revenue for any financial year during the transition period, that could have accrued to a State in the absence of GST, shall be calculated as per section 6. The actual revenue collected by a State in any financial year during the transition period would be the actual revenue from State Goods and Services Tax collected by the State, net of refunds given by the State under Chapter XI of the SGST Act, and the Integrated Goods and Services Tax apportioned to that State, as certified by the Comptroller and Auditor General of India. Total GST compensation payable in any financial year shall be the difference between

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ught into force. However, no such cess shall be leviable under this section on supplies made by a taxable person permitted to opt for composition levy under section 8 of the GST Law. Salient Features of Compensation Bill The nominal growth rate of revenue subsumed for a State during the transition period is projected at 14% per annum. FY 2016-17 is considered as the base year for calculating the compensation amount payable in any FY during the transition period. The base year revenue for a State will be the sum of revenue collected by the State and local bodies during the base year, taxes levied by the States or Centre, net of refunds, with taxes namely, VAT, CST, Entry tax, Octroi, local body tax, Luxury tax, Advertisement tax, Excise duty on medicinal and toilet preparation and any cess or surcharge levied by State Govt. The Acts of Central and State Govt. under which specific taxes will be subsumed into GST shall be notified. The revenue collected during the base year in a State, ne

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Goods and Services Tax – GST – Dated:- 10-3-2017 – The GST Council in its 9th Meeting held on 16 January 2017 took note of the work to be completed for the rollout of GST and after deliberations, agreed to extend the date for rollout of GST from 1st April 2017 to 1st July 2017. Steps taken to ensure rollout of GST by 1st July 2017 include approval of the Draft GST Compensation Law by the GST Council in its 10th Meeting on 18 February 2017 held in Udaipur, Rajasthan. Subsequently, the Draft CGST Law and Draft IGST Law were approved in the 11th Council Meeting held on 4 March 2017 at New Delhi. The issues of dual control and cross empowerment were resolved in the 9th Meeting of the GST Council held on 16 January 2017 in which a broad agreeme

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ocal bodies), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling. State cesses and surcharges in so far as they relate to supply of goods and services. GST will simplify and harmonise the indirect tax regime in the country. It is expected to reduce cost of production, thereby making the Indian trade industry more competitive, domestically as well as internationally. It is also expected that introduction of GST will foster a common or seamless Indian market and contribute significantly to the growth of the economy. Further, GST will broaden the tax base, and result in better tax compliance due to robust IT infrastructure. GST Council is presently deliberating on various issues entrusted to it. All the

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Goods and Services Tax – GST – Dated:- 10-3-2017 – The 122nd Constitution Amendment Bill, 2014 has been passed by the Parliament and after ratification by fifty percent of the States, the same has been enacted as 101st Constitution Amendment, Act, 2016. No Goods and Service Tax (GST) Bill has so far been passed. The Central Goods and Services Tax (CGST) Bill, Integrated Goods and Services Tax (IGST) Bill and Union Territory Goods and Services Tax (UTGST) Bill will be passed by Parliament. Each

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