Goods and Services Tax

Goods and Services Tax – GST – Dated:- 16-1-2017 – New Delhi, (PTI) Finance Minister Arun Jaitley will today look to break the deadlock over distribution of powers between centre and states to administer GST, an issue that is holding up launch of the new national sales tax from April. The all-powerful GST Council, headed by Jaitley, will meet for the ninth time today with the issue of who gets to administer the Goods and Services Tax (GST) being the single biggest issue on agenda. The council has been deadlocked in the last four meetings, the last one being on January 4, with states seeking sole powers to control assessee with annual turnover of up to ₹ 1.5 crore. Centre, however, is not in favour of a horizontal split as it feels st

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ut may figure in today's meeting, sources said. The council had in previous meeting agreed on most of the clauses of the draft IGST law, which along with Central-GST (CGST) and State-GST (SGST) have to be passed by the Parliament and state legislatives respectively before the new tax regime can be rolled out. Interated-GST or IGST deals with levy on inter-state supply (including stock transfers) of goods or services. GST will subsume a host of indirect taxes levied by the centre and the states, including excise duty, value-added tax, service tax, entry tax, luxury tax and entertainment tax. The Parliament passed the landmark constitutional amendment in August last year and more than half of state legislatures ratified it by mid-Septembe

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 16-1-2017 Last Replied Date:- 18-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Continuing with the analysis of the revised GST law, we shall today discuss changes bought in the definitions as provided in the law: 1. 2(17) Business: the new definition reads as follows: Business includes – (a) Any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit; (b) Any activity or transaction in connection with or incidental or ancillary to (a) above; (c) Any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction; (d) Supply or ac

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sed GST law is compared with old definition given in model GST law, it can be noted that a new explanation is added in the clause aiming to cover any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities in the definition of business. This has been added to make it amply clear that the functions and activities undertaken by the government as public authorities shall be treated as business activities. Treating them as business has a large impact to the extent GST is considered. Not only the definition of supply but the cenvat credit provisions, all mandate that the activities undertaken by the taxable person should be in the course or furtheranc

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, all other activities shall be termed as business transactions and will be covered under GST. Even in the present system of service tax also, there is reverse charge mechanism on all services provided by Government except the services mentioned in schedule IV. This implies that the same system will continue in the proposed GST also and it might be possible that the reverse charge will be applicable on the same. Moreover, we have seen that there is controversy of service tax liability on club and association. On the basis of principal of mutuality, it was held that club and its members are one and same person and hence the service tax is not applicable on the same. It was held by Bihar High Court in case of Ranchi club and Gujarat High Cour

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9th CST Council Meeting Dated:- 16-1-2017 GST Council – Minutes – Circulars – GST – Minutes of the 9th GST Council Meeting held on 16 January 2017 The ninth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 16 January 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 . The officials from the Ministries of Power and Renewable Energy of the Government of India and the trade representatives who made presentations before the Council is at Annexure 3 . 2. The following agenda items were listed for discussion in the ninth meeting of the Council- 1. Brief presentation by representatives of Power Sector 2. Confirmat

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the Power Sector to make a brief presentation on the impact of GST on Power Sector. 4.1 Shri Pradeep Kumar Pujari, Secretary, Ministry of Power, in his introductory remarks, stated that implementation of GST would have an impact on the cost of generation, transmission and distribution of power. He observed that impact on thermal and hydel power plants would be different because coal was a major input for thermal power plants. He stated that any change in the tariff of power would have a big impact on the economy. He further stated that power tariff was approved by the regulator. He explained that there were broadly two regimes for determining power tariff, namely the cost-plus regime and the competitive bid regime. He explained that in the cost-plus regime, the cost of inputs was passed on to the consumers and in the competitive bid regime, the bidder took into account the cost of the inputs while making the bid for power tariff. He also explained that there was a very large elemen

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nistry of Power made a presentation giving different input tax rate scenarios under GST for the power sector and its impact on the price of power per unit for both coal-based and hydro power plants. For coal-based power plants, he stated that if electricity was kept out of the GST net, but inputs for generating electricity were taxed at the rate of 18%, the net impact could be an increase in price per unit from ₹ 6.99 to ₹ 7.10. He suggested alternative options for plants in operation and for new plants. He explained that if electricity was kept under GST in the zero rated category, the cost per unit would be reduced to ₹ 6.53 from the present ₹ 6.99. He stated that if this scenario was not possible due to revenue implication and if electricity was kept out of the GST net, the cost per unit of power for plants in operation would be ₹ 7.01 if coal was taxed at the rate of 12% and other inputs were taxed at the rate of 18%. He added that this cost could come

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st of power per unit would be higher if the same GST rate was kept for inputs for coal based and hydro power plants. He suggested that the hydro power plants should be treated as part of the renewable energy sector where presently duty regime was considerably lower as compared to coal and hydel power plants. He stated that around 11,000 megawatt hydro power capacity was expected to be added in the next five years and most of the projects were situated in the North-East or in the Special Category States. He suggested that supplies made to under-construction power projects should be granted the status of deemed export as was being contemplated for solar power projects. He observed that this would involve a relatively small tax short fall of₹ 880 crore spread over a period of five years. He pointed out that any tariff increase on power due to GST would have a multiplier effect on economic development and would adversely impact industrial production, GDP growth, make in India campaig

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coal at 5% and on other inputs at 18%. He pointed out that they had also given alternate proposals. The Hon'ble Chairperson enquired whether it would be desirable to maintain the present rate of taxation for the power sector and to this the Secretary, Ministry of Power responded that this could work for the thermal power sector but not for the hydro power sector. He also pointed out that electricity sector was different from the sectors like transport, civil aviation, etc. as this was consumed by the poorer sections of the society and the aim of the Government has been to electrify every home. The Secretary, Renewable Energy observed that permitting zero rating for this sector would not have any impact as presently they were not charged to any taxes. The Hon'ble Minister from Tamil Nadu observed that tax rate should be revenue neutral. He also wondered whether increase of tariff was due to tax rate on services going up to 18% for EPC (Engineering Procurement and Construction) c

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39;to encourage voluntary registration'. The Council agreed to replace the version of the Hon'ble Minister as per the suggestion made. 5.2. The Hon'ble Minister from Karnataka stated that the decision recorded in paragraph 24(ii) in relation to Section 10(2) of the Draft GST Compensation Law implied that the Council would sit and decide the mode of raising additional resources only when amount in the GST Compensation Fund fell short. He observed that this would not be a practical approach and suggested that, instead, the Council could give a standing authorisation to the Government of India to raise additional resources when the amount in the GST Compensation Fund fell short. The Secretary to the Council (hereinafter referred to as 'the Secretary') suggested to also add the expression 'is likely to fall short' in the fourth line. The Council agreed to the suggestion of the Secretary. 6. In view of the above discussions, for Agenda item 2, the Council d

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dual control and cross-empowerment. He proposed that these issues should be discussed first such as the 13 changes to the Model GST Law proposed by the Law Committee and circulated as an agenda note under agenda item 7 for the 8th GST Council meeting held on 3 and 4 January 2017, the provisions of Appellate Tribunal and the fitment of various commodities into the tax slabs. He suggested that the subject of cross-empowerment might be taken up after discussing and deciding the above issues. The Hon'ble Chairperson stated that the issues relating to the Model GST Law could be taken up later and that in this meeting, the Council should try to resolve the thorny issue of cross-empowerment. He invited the Chairman, Central Board of Excise and Customs (CBEC) to give his views on this subject. He further stated that along with the Members, officers could also contribute in the discussion to follow. 8. The Chairman, CBEC observed that cross-empowerment in the context of Central Goods an

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5 crore. He stated that most activities relating to taxpayers with turnover below ₹ 1.5 crore could be entrusted to the States and that the Centre could only have a small presence in this taxpayer segment. He stated that for taxpayers with turnover above ₹ 1.5 crore, Centre could carry out a greater percentage of scrutiny. He suggested that the taxpayers could be given a choice to go to either of the two administrations and that a taxpayer could choose to go to the State administration for activities relating to registration, post registration, etc. On IGST, he emphasised that there was a Constitutional challenge to entrust its administration to the State tax authorities, but in order to help build a consensus, he presented two options by which the Central government could cross-empower the State tax authorities under the IGST Act. He stated that the first option could be to empower State tax administrations for all processes like scrutiny, demand, audit, etc. but they shou

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377; 1.5 crore. As regards suggestion for carve out for exclusive jurisdiction of the Centre for adjudication on place of supply issues, he suggested that this should apply only where there was a dispute between two States. The Chairman CBEC suggested that carve out for the Central tax administration should be for all place of supply issues including where a third State was aggrieved or where there was a valuation challenge for an inter-State supply. 10. The Hon'ble Chief Minister of Puducherry stated that earlier, several permutations and combinations had been discussed on this issue including a proposal of vertical division. He added that an entirely new concept had been introduced by the Chairman, CBEC and requested that it should be tabled in writing. The Hon'ble Minister from Karnataka observed that the proposal appeared rational and worthy of consideration but requested more details in terms of numbers. He also added that the Chairman, CBEC had introduced a few caveats

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e, the officers of the State and the Central tax administration could sit together and decide the percentage of audit to be done by each. He stated, as an example, that more complicated service tax assessees could be taken up for audit by the Central tax administration. He stated that other than audit, servicing of taxpayers in other areas like change in registration particulars, etc. could be done by the State tax administration if the taxpayer was comfortable with them and this could also include taxpayers from the services sector. He stated that on cross-empowerment under the IGST Act, out of the two options proposed by the Chairman, CBEC, the better option would be that the States could do adjudication relating to issues arising out of inter-State supply except for place of supply issues as such disputes would affect the interest of two States. 12. The Hon'ble Deputy Chief Minister of Gujarat suggested to first arrive at the ratio for division and the rest could follow. He s

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rejected outright as the percentage of intervention above ₹ 1.5 crore would have exceeded 5%. Instead, he suggested that the auditable sample should be 5% each for taxpayers below and above ₹ 1.5 crore turnover. He also agreed that neither the Central Government nor the State Government should be ousted from any jurisdiction. He stated that 42 lakh taxpayers with turnover above ₹ 1.5 crore should be divided in the proportion of the staff strength of each administration. He also supported the proposal of the Chairman; CBEC that the other functions in relation to taxpayers below the turnover of ₹ 1.5 crore should be handled by the State tax administration. The Hon'ble Minister from Assam welcomed the proposal of the Chairman, CBEC to empower the State tax authorities under the IGST Act. The Hon'ble Minister from Telangana also observed that the suggestion of the Chairman, CBEC was a good one and it could be a basis to resolve this issue. Ms. Mona Khandhar

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not assigned to one administration, each would blame the other for lack of action. The Additional Chief Secretary (Taxes), Kerala stated that if freedom was left to the taxpayer to choose one of the two administrations, he might choose the one who would favour him. The CCT, Assam also expressed the apprehension that a taxpayer might not choose any tax administration or choose one who could collude with him. The ACS and CCT, Tamil Nadu stated that a large number of functions needed to be carried out in the field and the taxpayers needed handholding by the tax administration. The CCT, Uttar Pradesh supported dividing the taxpayer base. The CCT, Gujarat observed that for a successful implementation of GST, responsibilities to tax administrations should be assigned clearly and, if this was not done, there would be lack of accountability. He supported a vertical division. The CCT, Bihar supported the suggestion of Chairman, GSTN that a tax payer should report to the same authority to whom

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t and carry out enforcement functions. It added that the State's tax administration could issue demand, adjudicate or file appeals in respect of inter-State supplies of goods and services except in the following situation: (i) where issue related to changing the declared nature of supply from intra-State to inter-State or vice versa or led to change in the destination of supply from one State to another; (ii) consumption of supply was required to be apportioned between various States; (iii) valuation of inter-State supplies between related parties; (iv) the consuming State advise that the case be adjudicated by the Centre; (v) all import and export related functions. 15. The Secretary summed up the deliberations during the lunch break meeting with the officers and informed the Council that the overwhelming view of the States was to have a division of tax-payers for administrative purposes between the Central and the State tax administrations. He further informed that two options

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16: The Hon'ble Minister from West Bengal observed that the oral proposal of the Chairman, CBEC had only one caveat but the written paper circulated by the CBEC had five caveats. He expressed that the notion of taking geographically stratified sample was problematic. He further pointed out that CBEC's proposal appeared to be more in the nature of loud thinking as it was contingent upon the Ministry of Law being able to find a viable legal solution. The Hon'ble Chairperson stated that CBEC had taken a strict legal view that IGST could only be levied and collected by the Central tax administration and apportioned to the States. He pointed out that there was another view that under Article 258 of the Constitution, the Hon'ble President of India, with the consent of the Hon'ble Governor of the State, could entrust the function of the Central administration to the State administration. The Hon'ble Minister from Karnataka stated that another alternative was to delegat

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into five caveats and he had reservations in this regard. The Hon'ble Minister from Tamil Nadu observed that CBEC's written note was at variance with the statement of the Chairman, CBEC. He stated that in his view, IGST could not work without cross-empowerment to the State tax authorities and that it was not a correct way of discussion to state that the legal department would need to find a solution for cross-empowerment. He suggested that in order to avoid dual interface for tax payers, there should be a cut off of ₹ 1.5 crore turnover and audit of a certain percent of 'tax payer falling below this threshold could be done by the Central tax administration but otherwise, the control of the taxpayers in this segment should rest with the States. He added that taxpayers above the turnover of ₹ 1.5 crore should be divided equally between the Central and the State tax administrations. He stated that the overall percentage of sharing should be 75% for the States and

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e Minister from Kerala stated that tax payers with turn over below ₹ 1.5 crore should be exclusively with the State tax administration and those above the turnover of ₹ 1.5 crore should be divided equally between the two administrations. He further stated that there should be cross-empowerment under the IGST Act. Shri Alok Shukla, Joint Secretary TRU, CBEC stated that like States had concern regarding ensuring correctness of assessment of IGST and wanted powers under the IGST Act, the Central administration must also have a say on the collection of CGST for tax payers with turn over below ₹ 1.5 crore. He added that the Centre's jurisdiction for enforcement, audit and scrutiny of returns should not be completely ousted in respect of taxpayers below ₹ 1.5 crore turnover segment but the other functions could be carried out by the States. He also suggested that for tax payers below ₹ 1.5 crore turnover, Centre's intervention could be limited to 1% with

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strative division. The Hon'ble Minister from Assam supported this proposal. He observed that there could be a potential dispute as to when a taxpayer crossed the turnover threshold of ₹ 1.5 crore or conversely went below this threshold. The Hon'ble Minister from Maharashtra also supported a vertical division in the ratio of two-third for the States and one-third for the Centre and suggested that computer could do this division. The Hon'ble Minister from Kerala stated that all taxpayers below the turnover of ₹ 1.5 crore should be exclusively under the control of the State tax administrations. Shri Manish Kumar Sinha, Commissioner GST Council suggested that whatever model was adopted, the risk prone taxpayers for audit should be drawn from the entire taxpayer base. 19. The Hon'ble Chairperson, summing up the discussion laid out a few broad guidelines for a possible decision on the subject. He stated that out of the entire universe of the taxpayer base, draw

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ll taxpayers below ₹ 1.5 crore should be with the State tax administration and that the Central administration should not take up audit of 10% of the taxpayers in this segment. The Hon'ble Minister from Kerala stated that the State tax administration was closer to small dealers in the administrative reach and he agreed that the Centre could have a small space for auditing taxpayers falling below the turnover limit of ₹ 1.5 crore and that this sample could be drawn from the entire taxpayer base below ₹ 1.5 crore turnover. The Hon'ble Minister from Maharashtra reiterated his preference for a vertical division with two-third share going to the States from the entire value chain and suggested that a variation of this principle might be allowed for those States who wanted to have exclusive control of taxpayers below ₹ 1.5 crore turnover. He added that the two-third share of such States could be calculated after adjusting the total number of taxpayers below &#

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e should be no dual control in respect of audit by the Central tax administration for taxpayers with turnover below ₹ 1.5 crore. He also supported the suggestion to give flexibility to the States in determining the share of two-third taxpayers falling under their jurisdiction. He further stated that such an arrangement should not be made as a part of the law; rather it could be operated through a resolution which could be changed later. He stated that the Council could also permit a State to move from one model to another. Shri Tuhin Kanta Pandey, Principal Secretary (Finance), Odisha stated that there should be no diffused accountability except for enforcement and that a fixed proportion of dealers should be assigned to the Central and the State tax administrations. He added that option may also be made available to any State if it wishes to be allocated 100% taxpayers below the turnover of ₹ 1.5 crore subject to the overall share/proportion of dealers allocated to a State

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supported the proposal of the Hon'ble Minister from Tamil Nadu. 22. The Hon'ble Chairperson summed up the suggestions and the possible solutions: (i) there should be a vertical division of taxpayers where two-third share should go to the States and one-third share should go to the Centre (Gujarat's suggestion); (ii) for taxpayers below ₹ 1.5 crore, the administrative control should vest with the States and only 10% of units to be audited by the Central tax administration (Tamil Nadu's proposal); (iii) administration of taxpayers below ₹ 1.5 crore turnover to rest with the States and those above ₹ 1.5 crore to be divided between the Centre and States; (iv) States could have flexibility to negotiate the numbers with the Central tax administration; (v) Intelligence based action could be taken by both tax administrations without any division; (vi) Scrutiny and audit to be part of the division; (vii) IGST to be cross-empowered either under law or under

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rom West Bengal observed that the issue regarding allowing 10% audit to Central tax administration for taxpayers below ₹ 1.5 crore turnover was an important matter and it should be discussed when the Hon'ble Member from D.P. was also present. The CCT Gujarat suggested that within the overall formula of two-third and one-third division between State and the Centre, it could also be considered whether the base of the Service Tax payers could be left with the Central tax administration. The Hon'ble Minister from Assam observed that the States might need to create more posts at State level if administration of all Service Tax assessees below the turnover of ₹ 1.5 crore was entrusted to the States. The Hon'ble Minister from West Bengal suggested that both the Central and the State tax administrations could completely give up audit of taxpayers below Rs. l.5 crore turnover and that the other aspects of administration should be left with the States alone. 24. The Se

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variation should be permitted for administrative division of taxpayers. The Hon'ble Chairperson observed that States had historically taken a certain position in respect of taxpayers below the turnover of ₹ 1.5 crore and that needed to be taken note of. The Hon'ble Minister from Tamil Nadu suggested that there should be a particular percent of division of taxpayers below ₹ 1.5 crore turnover and another percent for taxpayers above ₹ 1.5 crore. He further stated that no carve out should be allowed in relation to cross-empowerment under lGST. The Hon'ble Chairperson stated that the only grey area left was in relation to division of taxpayers below ₹ 1.5 crore threshold where the Centre proposed a 20% share and the Hon'ble Minister from Tamil Nadu had suggested a 10% share. He further observed that there was not much substantial difference between the two proposed percentages of 20 and 10. 25. The Hon'ble Minister from Tamil Nadu sought clar

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5 crore and so on. He also observed that the proposed arrangement should not be binding on all the States. The Hon'ble Minister from West Bengal stated that for taxpayers below the turnover of ₹ 1.5 crore, there were three options on the table, namely to have a division in the ratio of 80% and 20% or 90% and 10% or 100% and 0% in favour of the States. He stated that Tamil Nadu's position was very close to the option of 100% and 0%. He added that the proposal made by the Hon'ble Minister of Tamil Nadu was not acceptable to his State and he sought a flexibility for West Bengal that 100% of its taxpayers below ₹ 1.5 crore turnover would remain with the State. The Hon'ble Chairperson stated that broadly, the concern of the States was that the Central tax administration should not scrutinise the books of account of small taxpayers in the goods sector and one solution to this concern could be that the 20% taxpayers allocated to the Centre should only be from the S

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jurisdiction of Centre could only be Service taxpayers and taxpayers above ₹ 1.5 crore turnover should be divided equally between the two administrations. He stated that other suggestions remained the same which he had earlier put on the table. The Hon'ble Minister from Bihar supported the proposal of the Hon'ble Chairperson. The CCT Andhra Pradesh raised an issue whether goods would include 'deemed' goods and whether these would remain with the States. The Secretary observed that the 'deemed' goods were mostly considered as services and that the Centre would have to get a share of such Service Tax assessees. The Hon'ble Minister from West Bengal stated that restaurant was in the category of deemed goods and it should remain in the jurisdiction of States. The Hon'ble Minister from Tamil Nadu suggested not to divide the taxpayer base on the basis of service category and suggested that the division should be based on the available resources with the

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The Hon'ble Minister from Haryana suggested that the Hon'ble Chairperson could seek the views of each State on this issue. The Hon'ble Minister from West Bengal objected to this suggestion and stated that this amounted to voting in disguise. He also reminded the House that earlier on many occasions the sense of the House was not adopted as the basis of consensus and on this issue, no sense of the House had emerged as yet. The Hon'ble Chairperson observed that the Council had avoided voting till now and it must continue to work on the principle of consensus and develop a healthy convention in this regard. The Hon'ble Minister from Tamil Nadu stated that he had changed his position and now supported a vertical division with two-third of taxpayers going to the States and one-third to the Centre. The Hon'ble Chairperson stated that in order to reach consensus, he offered that of the taxpayers below ₹ 1.5 crore turnover, 90% should be allocated to the States a

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taxpayers above ₹ 1.5crore turnover, all administrative control shall be divided equally in the ratio of 50% each for the Central and the State tax administration; iv. The division of taxpayers in each State shall be done by computer at the State level based on stratified random sampling and could also take into account the geographical location and type of the taxpayers, as may be mutually agreed; v. The new registrants shall be initially divided one each between the Central and the State tax administration and at the end of the year, once the turnover of such new registrants was ascertained, those units with turnover below ₹ 1.5 crore shall be divided in the ratio of 90% for the State tax administration and 10% for the Central tax administration and those units above the turnover of ₹ 1.5 crore shall be divided in the ratio of 50% each for the State and the Central tax administration; vi. The division of the taxpayers may be switched between the Centre and

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nion of India unless the Hon'ble Supreme Court decides otherwise in the ongoing litigation on the issue but the power to collect the State tax in the territorial waters shall be delegated by the Central Government to the States. Agenda Item 4: Discussion on issues of considering sale within twelve nautical miles as inter-state or intra-state sale 29. This agenda item was covered during the discussion on agenda item 3. Agenda Item 5: Date of the next meeting of the GST Council 30. Before discussing the next date of the meeting, the Council briefly discussed the date Of implementation of GST. The Hon'ble Minister from Maharashtra suggested that GST should be implemented from l April, 2017. The Hon'ble Minister from Assam stated that it was not desirable to change the tax regime in the middle of the financial year and suggested that it should be implemented from 1st April, 2017. The Hon'ble Minister from Kerala stated that the decision could not be rus

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w had been put in the public domain on 26 November, 2016, several comments had been received and on this account, about 15 to 20 minor changes might be needed. On enquiry from the Hon'ble Chairperson, he informed that the revised Model GST Law could be brought to the Council for its consideration by around 15 February, 2017. The Hon'ble Minister from Kamataka stated that the registration process was on going and that the status of fitment exercise for rates of tax was not known. The Hon'ble Minister from West Bengal stated that adequate time was needed for rate of taxes to be put into the ERP (Enterprise Resource Planning) of the taxpayers. The Hon'ble Minister from Tamil Nadu stated that 1 st July, 2017 appeared a more practical date for implementation of GST. The Hon'ble Minister from Kamataka also concurred with this observation. The Principal Secretary (Revenue), Telangana stated that an effort could be made to implement GST by 1st April, 2017 and if it was not

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Goods and Services Tax – GST – By: – Ashish Mittal – Dated:- 14-1-2017 – Background: Every time a law comes into force the Assessee falling under its ambit has to get them registered in said law and comply with the relevant provisions. CBEC in association with empowered GST council has notified draft Model GST model Law (in short MGL ) as revised on 25th November 2016, rules and schedules issued in this regards wherein vide CHAPTER – VI, a set of five Sections (in short Sec. ) read with separate rules issued in this regards for compliance and a schedule defining person liable to be registered wide Schedule-V of the MGL for classifying the fate of certain classes of Assessee. Applicability The applicability of registration under MGL on various classes of Assessee along with turnover limit (in short T/o) can be explained in a summarized form in the following table (Reference to Sec. 23 read with Schedule-V have been made herein) S.No. Class of Assessee Liable for Registration as Per Sec

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ys from appointed date 3 In case of Succession of Business-the successor of business need to get fresh registration. No Limit is Applicable as it is transfer of existing business Within 30 days of transfer or succession 4 In case of amalgamation or demerger-the resultant Assessee No Limit is Applicable as it is transfer of running business Within 30 days of issue of Certificate of Incorporation 5 Interstate supplier No T/o Limit Within 30 days of indulging in such activity under MGL. 6 Casual taxable person No T/o Limit At least five days prior to the commencement of business 7 Non-Resident Taxable person 8 Person liable under Reverse Charge Mechanism (in Short RCM ) No T/o Limit Within 30 days of indulging in such activity under MGL. 9 Deductor specified under Sec. 46 of MGL or Collector of Tax under Sec. 56 (irrespective of fact of separate registration) 10 Agent of a taxable person No T/o Limit Within 30 days of indulging in such activity under MGL. 11 Input Service Distributor Spec

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than Non-Resident, Deductor under sec. 46 or collector under Sec. 56, fill Part A of FORM GST REG-01 particulars such as email, PAN, Mobile No. which would be verified. 2. After verification an application reference number shall be generated and communicate 3. Then fill Part B of FORM GST REG-01, signed and submit along with documents. 4. An acknowledgement shall be issued in FORM GST REG-02 (electronic on temporary basis) 5. Proper officer after verifying above shall approve within 3 working days form application. 6. If found deficient with regards to information or documents, then it shall be intimated in FORM GST REG-03 within 3 working days form application and reply should be given within 7 working days form intimation receipt in FORM GST REG-04. 7. The reply forwarded to concerned proper officer and he may Grant approval within 7 working days Reject along with reasons in FORM GST REG-05. Note: If no action taken by proper officer in 3 or 7 working days then automatic registration

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: At the outset emphasis must be given to governments intention of keeping each and every communication with the department in electronic form thereby defining forms for each and every communication whether from Assessee or department s side thereby promoting the Hon ble PM view of digital India and paper less economy which would definitely be appreciated by the industry thereby reducing the manual work load and regular visiting to the department. Although huge efforts are being made by the government towards building a strong GSTN portal but it should effectively carters the need of various class of Assessee thereby enabling in Digitalization . Common Points and Penal Provisions related to Registration: Certain common & penal provisions for all the Assessee (Reference to Section 23 and 24 read with rule 4, 6,7,10, 15, 17 of Registration rule) 1. For Multiple Locations in a single state, different registration may be taken on fulfilling certain conditions i.e. as per Rule-4 of regi

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Display GSTIN and RC in prominent place in principal place of business. 8. All communication shall be done electronically on GST site by department and Assessee and communication shall be appropriately signed by authorized person. 9. Physical verification if required by proper officer may be conducted and documents shall be uploaded in Form GST REG-26. Amendment in registration Amendment in registration (Reference of Section 25 read with rule 9 of Registration rule has been made) 1. Any information change which was filled at time of registration shall be intimated within 15 days to the proper officer in FORM GST REG-11 along with documents as proof. 2. Changes relates to the Name, Principal Place of Business, and details of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent then order to be passed within 15 days by proper officer on satisfaction in order under FORM GST REG-12. 3. for others as soon as application is filled on por

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n case of composition scheme person and 6 month for others person taken voluntary registration don t start business within 6 month 3. Registration obtained by fraud, willful misstatement or suppression of facts, can be cancelled with retrospective effect. 4. Cancellation after giving Opportunity of being heard (in short OBH ), by issuing SCN under FORM GST REG-15, Assessee still liable for old dues. 5. In case of cancellation ITC/CENVAT of inputs capital goods shall be reversed in prescribed manner. 6. Application may be made in FORM GST REG-14 for cancellation along with relevant documents on being satisfied proper officer shall issue cancellation order under FORM GST REG-16 within 30 days. (Apply mutatis mundis to legal heir) 7. On cancellation by proper officer an application in FORM GST REG-17 within 30 days of service shall be filled (except in case of non-filling of return in such case application can be filled after return is filled and dues paid thereof). 8. After being satisfi

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-1-2017 Last Replied Date:- 18-1-2017 – While the Government still claims that it is actively working to see GST roll out from April, 2017, much would depend upon next week's GST Council meeting. States have indicated that it could be doable from any time between June and September, 2017. Finance Minister has once again affirmed in ongoing Vibrant Gujarat Summit that GST could be introduced in April, 2017. Gujarat may be one of the few states that are prepared for GST. Government is working overtime to make it a reality with target of 1st April, 2017. However the present developments are not in sync with this dream. All the states will have to pass legislations of SGST

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ocess of being fully geared up for April, 2017 (though it may not happen). If Government may so feel, it may increase the rate of Service Tax to avoid any revenue loss due to delayed GST. This will serve dual purposes – will improve revenues and bring Service Tax rates closer to standard GST rates. Since the likely standard rte of GST would be 18 percent as decided by GST Council, there is all likelihood that Service Tax rate may be increased to 16 or 18 percent. This would result in higher revenues to centre as compared to GST regime where rate is likely to be lower for some select services. We can look for the following in Budget- 2017: Clear road map and Government's irrevocable intention on GST implementation A forward looking state

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and whether rate of taxes / cases be lowered) Laying GST Bills in Budget session itself For the first time, Union Budget will include (subsume) railway budget in it as there will be no separate railway budget. This would also mean a total fact lift for railways in two ways, moving on to accrual based accounting and second, an independent authority to recommend changes in fares and fright tariff. With general elections having been announced in five states from 5th February till 8th March, 2017, the combined opposition is now demanding that Union Government should not present the Budget on 1st February, 2017 as it could influence the voters in election states. However, Government does not want to delay the budget, and rightly so. It appears

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 14-1-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN Continuing with the analysis of the revised GST law, we shall today discuss changes bought in the definitions as provided in the law: 2(4) Adjudicating Authority: The new definition reads as follows: Adjudicating Authority means any authority competent to pass any order or decision under this Act, but does not include the Board, the Revisional Authority, Authority for Advance Ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal; Under the earlier definition in Model GST law, only Board, First appellate authority and Appellate tribunal was excluded. But when compared to thi

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eads as follows: Agent means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services on behalf of another, whether disclosed or not; Whereas the earlier model GST law gave the definition of agent as under:- (5) agent means a person who carries on the business of supply or receipt of goods and/or services on behalf of another, whether disclosed or not and includes a factor, broker, commission agent, arhatia, del credere agent, intermediary or an auctioneer or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or n

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CBEC GST Migration Help (PPT for taxpayers on Migration) – Goods and Services Tax – GST – Dated:- 13-1-2017 – CBEC GST Migration Help (PPT for taxpayers on Migration) – News – Press release

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Goods and Services Tax – Started By: – Chandrashekhar Kandpal – Dated:- 13-1-2017 Last Replied Date:- 18-1-2017 – Dear ExpertsI will appreciate your views on the following :1. Whether SGST or CGST paid in one state can be utilised as set off in other state. e.g. a branch office in Delhi registered under GST and GST from where no supply is taking place. Can we take set off of SGCT/CGST charged for Delhi office against the liability in Maharashtra? 2. If an Exhibition in organised in a state wher

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 13-1-2017 Last Replied Date:- 2-7-2017 – Introduction Alcohol sector is the second largest contributor of taxes to state Government exchequers yielding more than ₹ 90, 000 crores in taxes every year. The total tax impact for liquor companies are in the range from 70-150% in most states as no inter-tax set-offs are available for them. While alcoholic beverages represent 25% of the food and beverage market in China and the US, in India, spirits alone is 34%, making it the largest category. For most states, alcohol contributes to 20 to 25% of state revenue (state excise). It may, however, be noted that manufacture of liquor meant for human consumption is subject to state excise duties and not Central Excise Duty under the Central Excise Act, 1944. State Excise Duties will not get subsumed in GST. With Constitution (101st) Act, 2016 which authorizes levy of GST in India, it is clear that alcohol beverages shall be kep

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try No. 30 of exemption Notification No. 25/2012-ST. To give effect to the exclusion of processes in relation to alcoholic liquor from negative list, exemption under Notification No. 25/2012-ST was also amended w.e.f. 01.06.2015 to exclude exemption to intermediate production processes/job works in relation to alcoholic liquor meant for human consumption. Liquor industry is also subject to levy of State VAT and other local taxes as entry tax / octroi etc. Goods and Services Tax (GST) as a tax reform Migrating to Goods and Services Tax (GST) is a time to revisit the taxation and remove the anomalies. Goods and Service Tax (GST) is a destination based consumption tax which is a levy of tax on all goods and services with the objective of expanding the tax base through wide coverage of economic activities , mitigating the cascading effect , reduction of exemptions , enable better compliances etc. thereby resulting into formation of common national market for goods and services . Taxation i

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ll lead to both, positive and negative impact. Likely positive GST impact on the alco-beverage industry Better and efficient logistics/distribution channels State taxes other than excise/VAT to be subsumed in GST. To that extent, input tax credit may be allowed. Relief from dual administrative control (only States to control) Likely adverse GST impact on the alco-beverage industry There is no concept of centralized registration in GST regime, unlike in the present setup. Where input goods and services used in the petroleum and liquor industries are covered under GST and the outputs are not, there could arise complex issues surrounding double taxation, ineligibility for input tax credits, supply chain regulations, and so on. GST will accentuate increased cascading effect of taxes on the final retail product price because no input tax credit will be available between GST and state excise/VAT. No input credit will be available between any two or more State taxes and on various goods and s

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certain inputs / outputs. There will be adverse impact on major consumers like hotels, restaurants, pharmaceuticals, perfumes manufacturing sector etc. in the form of increased cost. Major Challenges in GST GST poses multifarious challenges to alco-beverages industry. In the GST regime, due to higher GST rates tax on many input raw materials (for instance, agriculture inputs to ethanol production) as well as services, costs would go up significantly which would prove detrimental to the industry in both the short-term and the long-term. Even if all of these costs are passed down the value-chain, the additional burden may have a huge working capital impact on the industry. Manufacturers of alcoholic beverages for human consumption procure the raw materials (Extra Neutral Alcohol (ENA)/Grain Neutral Spirit (GNS) / Concentrate of Alcoholic Beverage) either through captive manufacture or by way of purchase from third parties in India or they import it from other countries. As the finished p

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being excluded from GST base, will be unable to avail credit for the enhanced tax paid on transportation services. The 70% abatement should be continued for taxation of these services. Some of the alco-beverages manufacturers use their own exclusive patented bottles, which may be used 5-7 times by the same manufacturer. Presently, many States impose a lower VAT rate with some states like imposing the standard VAT rate on glass bottles vattable against the VAT on the finished product sold within the state. The used glass bottles which are purchased by brewers / spirits manufacturers from used bottle dealers are again taxed at the lower/ standard VAT. In GST, each re-use / re-supply is likely to suffer GST @ 18% with no possibility of credit as alcohol is excluded from GST base. The effective GST cost on every bottle will be about 70% of the purchase price of a new bottle. This too will add to cost as levying VAT on used bottles at the full purchase price leads to double taxation, since

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 13-1-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN As the GST law has been revised, it is pertinent to note down what all issues still remain un-tackled or untouched. Also certain provisions are there which are yet again drafted in such a way that they would attract litigation. Here we are discussing two such provisions: Seeing the valuation provisions as prescribed in section 15, the sub-section 3 of section 15 lays down the conditions to be adhered in relation to exclusion of discounts. The sections reads as follows: (3) The value of the supply shall not include any discount that is given: (a) before or at the time of the supply provided such discount has been duly record

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d the like sectors. For the pre-shipment discount, this section clearly provides that no discount shall be allowed unless the same is given either before or at the time of supply. Now, how a discount before the supply of goods or services? Secondly, if a price is negotiated between supplier and buyer then department will always compare with other buyer price and will intend to challenge such price that these are due discount given to buyer and it is clearly not mentioned on invoice. This is due to the second condition that it should be recorded in the invoice issued for such supply. Hence, every price negotiated should mention the standard price and then discount given to buyer. Otherwise, it will always be liable to be challenged by the de

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n a particular period. Now, such type of discounts cannot be deducted beforehand. Such type of discounts were allowed under Central Excise law on notional basis. Such type of discounts will fall under second category. Hence, you have pay GST firstly and then claim discounts afterwards. However the discounts related to post sale turnovers are also not allowed. It will be allowed only if there is agreement to that effect beforehand. Normally, big companies enters into agreement and announces their policies. But the small traders does not formally enters into such agreements. They simply gives the discounts. Such discounts will always be under challenge. The above conditions have to be coupled with the condition that the recipient of the disco

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 12-1-2017 – Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Therefore to understand supply of goods and services it is more important to under stand the Schedule- I to IV also whether particular supply is goods or service and there are situations supply shall not constitute as supply and out of the ambit of GST. Supply has been defined in Section 2[95] as follows; Supply shall have the meaning as assigned to it in section 3. Scope of Supply [Section 3] 1. Supply includes A] all forms of supply and /or services such as Sale Transfer Barter Exchange License Rental Lease or disposal Made or agreed to be made for consideration by person in the course or furtherance of business. B] importation of services for c

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the principal or from agent to principal where agent receive the goods on behalf of principal . importation of service by taxable person from related person or his establishment outside India in the course or furtherance of business. Supply shall be treated as supply of Goods or Services [ Schedule-II ] Transfer Transfer of title in goods is supply of goods Transfer of goods or right in goods or of undivided share in goods with out the transfer of title is supply of service Transfer of title in goods under agreement that the property will pass at future date on payment of full consideration shall be supply of goods Land and Building Lease , tenancy, easement, license to occupy land is supply of services Lease, letting out of building whether industrial, commercial or residential complex for business or commerce is supply of services. Treatment of Process Any treatment or process of other person goods is supply of services. Transfer of Business Assets Goods forming part of business asse

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r any authority authorized to issue completion certificate namely architect registered under Architect Act , Chartered Engineer registered with Institute of Engineers, License Surveyor of the local body of city or town. Construction include here addition, alteration, replacement, remodeling of any existing civil structure Temporary transfer or permitting the use of or enjoyment of any intellectual property right. Development, design, programming, customization, adoption, upgradation, enhancement, implementation of information technology software. Refrain from act, tolerate an act or situation or to do an act. Work contract including transfer of property in goods involve in the execution of work contract. Transfer of right to use any goods for any purpose for specified period or not, for cash, deferred payment or other valuable consideration. Supply by way of or as part of service or in other manner whatsoever, of goods, being food or any other article for human consumption or any drink

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ent , State Government or any Local Authority which shall be treated as neither supply of goods nor supply of services………… [Schedule -IV] Services provided by Government or Local authority to another Govt. or Local Authority excluding the following. Service by department of post by way of speed post, express parcel post, life insurance and agency services. Service in relation to aircraft or vessel Transport of goods or passenger Service provided by Govt. or Local authority to individual for discharge of its statutory power or function Issuance of passport , Visa, driving license, birth certificate or death certificate Assignment of right to use natural resources to individual farmer for the purpose of agriculture Services provided by Government or Local authority or Govt. Authority by way of Activity related to function provided to Municipality Activity related to function provided to Panchayat Health care and education Service provided by Govt. towards Dipl

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 12-1-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN:- IMPLEMENTATION OF GST STILL SAILING IN BOATS OF UNCERTAINTY! The eighth meeting of the goods and services tax (GST) council held on Wednesday yet again ended on an uncertain note, effectively ruling out the possibility of implementation of GST from 1 April. In this two day meeting the outcome came out to be insignificant as the litigious issue of sharing of administrative powers was not taken up at all. Further a new issue was raised by States of Kerala, Delhi, West Bengal, Karnataka, Meghalaya and Tamil Nadu of a rate split under GST. Instead of equally dividing the GST tax rate as determined initially by the centre, the

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y Centre or State on goods and services. The amendments made in the Constitution makes it mandatory to implement GST before 16th September, 2017. But, according to section 20 of the Constitution (One Hundred and First Amendment) Act, 2016, President has been given power to remove any difficulty and so it appears that even if the GST is not implemented by 16th September, 2017, the imposition of taxes on goods and services will continue. It is pertinent to mention that the migration of existing assessees to GST regime is in full swing as migration of VAT assessees has already been done for many States and the migration of Service Tax assessees is to commence from 09.01.2017. The taxpayers have been brought in an ironical situation wherein the

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Reorganisation of Customs jurisdictions and Chief Commissioner of Customs Bangalore Zone Public Notice – implementation of GST and formation of new GST Commissionerates to handover all the Customs work to Customs formations – Customs – 01/2018 – Dated:- 12-1-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALURU – 575 010 www.customsmangalore.gov.in Phone No: 0824-2408164 E-Mail ID: commr-cusmnglr@nic.in Fax No: 0824- 2407100 F.NO.S-26/04/2016 CUS TECH Date 12.01.2018 PUBLIC NOTICE NO. 01/2018 Attention of all Importers, Exporters, Trade and Customs Brokers is invited to the CBEC notification No. 82/2017 Cus. (NT) dated 24.08.2017 regarding reorganisation of Customs jurisdictions and Chief Commissioner of Custom

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Shimoga, Belgaum, Bijapur, Udupi, Gadag, Dharwad, Koppal, Bellary, Raichur, Bagalkot, Gulbarga, Bidar and Yadgir. The Customs work in the said jurisdiction shall be attended by the following offices/sections in Mangalore Customs Commissionerate w.e.f. 15.01.2018. Sl. No. Districts Work will be attended by 01. Uttara Kannada District Customs Preventive Unit, Customs Division, Karwar. 02. Udupi District Customs Preventive Unit, Malpe 03. Dakshina Kannada, Kodagu, Hassan, Chickmagalur, Shimoga Districts Export Promotion Section, New Custom House, Mangaluru. 04. Belgaum, Bijapur, Udupi, Gadag, Dharwad, Koppal, Bellary, Raichur, Bagalkot, Gulbarga, Bidar and Yadgir Districts -do- 4. The Officers of above offices/sections shall take over all the

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GST – States – 01/2017 – Dated:- 12-1-2017 – GOVERNMENT OF ASSAM OFFICE OF THE COMMISSIONER OF TAXES, ASSAM KAR BHAWAN DISPUR, GUWAHAT1-6 (Circular No. 01/2017) No.CTS-4/2017/1 Dated Guwahati the 12th January, 2017 Sub: Enrollment of existing dealers in GST Portal having multiple registrations under different Acts or single Act to be subsumed under GST. The existing dealers who are migrating to GST are required to get themselves enrolled in the GST portal www.gst.gov.in after obtaining Provisional User id and Password from http://www.tax.assam.gov.in. In course of GST enrollment, there will be some dealers, who because of the nature of their business activities, will have multiple registrations under VAT, CST, Entry Tax, Luxury Tax and Ent

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st only one Provisional id and Password for the same business vertical. In other words, they should not enroll themselves with other Provisional id and Password. However, there is an exception. When a dealer is having different business verticals, in such case of course, he can do multiple enrolments for different business segments as laid down in sub-Section (2) of Section 23 of the Model GST Law. The process described above shows that all entities registered under the existing laws and having valid PAN that will be subsumed under GST, will be given provisional registration and the onus will be on the taxpayers to get the same cancelled, if he is not liable to be registered under GST. (Anurag Goel), Commissioner of Taxes, Assam Guwahati Da

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On demonetization, Finance Minister Shri Arun Jaitley says that difficult decisions initially pass through difficult phases as historic decisions have temporary pain attached to them. Stressing the implementation of GST, FM says that most of the issues have been resolved; few critical issues are left which will be resolved in the next few weeks – News and Press Release – Dated:- 11-1-2017 – The Union Finance Minister Shri Arun Jaitley reiterated the advantage of taking bold and courageous decisions to transform Indian economy. He said difficult decisions initially pass through difficult phases as historic decisions have temporary pain attached to them. Speaking about demonetization, Shri Jaitley said that India needs bold decisions as it is

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d, the combination of a more digitized economy with a more efficient tax system will make India better. The Minister said that People want transparency. So, government is emphasizing on bringing transparency and elimination of discretion and Indian economy has opened up significantly in the last two years. About the Summit, Shri Jaitley said it has been branded as Vibrant Gujarat but it has become foremost economic conclave. It showcases both Indian economy and progress of Gujarat. Shri Vijay Rupani, Chief Minister of Gujarat, Shri Nitin Patel, Dy. Chief Minister of Gujarat, Dr. Hasmukh Adhia, Revenue Secretary, Govt. of India, Shri Amarjeet Sohi, Minister of Infrastructure & Communities, Government of Canada were also present on the oc

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Goods and Services Tax – GST – Dated:- 11-1-2017 – Gandhinagar, Jan 11 (PTI) Finance Minister Arun Jaitley today reiterated that the Centre is still aiming to roll out the Goods and Services Tax (GST) regime from April 1 if all pending issues are sorted out. GST, which is to subsume most of central and state taxes like excise, service tax and VAT, needs to roll out by latest September 16, 2017, he said. This because, under the Constitutional Amendment passed by Parliament for the GST implementation, some of the existing levies would expire after September 16. Jaitley said the government was aiming to implement the new sales tax from April this year. We would want it to be implemented from April if all issues are resolved. There is a provis

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Goods and Services Tax – GST – Dated:- 11-1-2017 – Gandhinagar, Jan 11 (PTI) Goods and Services Tax will usher in a very simple and less burdensome taxation regime as it will be a single rate indirect tax which can be paid by debit/credit cards, cheque and NEFT, Revenue Secretary Hasmukh Adhia said today. He said, GST will make it easier for traders and industry to access Input Tax Credit and also ease compliance burden as the entire country will become a single market. GST is a very very simple thing to follow, it is going to be very easy for all of you. There will not be any border restriction when you move goods from one state to another. And many of the small small taxes will go away. It will be one unified tax, Adhia said at the Vibra

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 11-1-2017 – Chapter XVI – Audit The chapter states the provision relating to the audit to be undertaken by the GST authorities. It prescribes the rights and obligation of the GST authorities in the event of conducting an audit. Not much is proposed in the revised draft law. One change that has been proposed is that now on the completion of audit, the proper officer has to inform the taxable person, whose records were audited, of the findings within thirty days of the completion of audit. Earlier in the old draft the time limit was not prescribed. This is a welcome step as currently there is no time limit for informing the assessee of the findings. As a result, there is considerabl

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Goods and Services Tax – GST – Dated:- 10-1-2017 – Model GST Law : Sec 166. Migration of existing taxpayers to GST (1) On the appointed day, every person registered under any of the earlier laws and having a valid PAN shall be issued a certificate of registration on a provisional basis in such form and manner as may be prescribed. (2) The certificate of registration issued under sub-section (1) shall be valid for a period of six months from the date of its issue: PROVIDED that the said validity period may be extended for such further period as the Central/State Government may, on the recommendation of the Council, notify. (3) Every person to whom a certificate of registration has been issued under subsection (1) shall, within the period sp

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ration under section 23. (7) A person to whom a certificate of registration has been issued on a provisional basis and who is eligible to pay tax under section 9, may opt to do so within such time and in such manner as may be prescribed: PROVIDED that where the said person does not opt to pay tax under section 9 within the time prescribed in this behalf, he shall be liable to pay tax under section 8. Draft Registration Rules Rule 14 . Migration of persons registered under Earlier Law (1) Every person registered under an earlier law and having a Permanent Account Number issued under the Income Tax Act, 1961 (Act 43 of 1961) shall be granted registration on a provisional basis and a certificate of registration in FORM GST REG- 21, incorporati

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he proper officer, to be correct and complete, a certificate of registration in FORM GST REG-06 shall be made available to the registered taxable person electronically on the Common Portal. (3) Where the particulars and/or information specified in sub-rule (2) have either not been furnished or not found to be correct or complete, the proper officer shall cancel the provisional registration granted under sub-rule (1) and issue an order in FORM GST REG-22: Provided that no provisional registration shall be cancelled as aforesaid without serving a notice to show cause in FORM GST REG-23 and without affording the person concerned a reasonable opportunity of being heard. (4) Every person registered under any of the earlier laws, who is not liabl

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Goods and Services Tax – Started By: – manish kataria – Dated:- 10-1-2017 Last Replied Date:- 11-1-2017 – We are assessed under UPVAT Central Excise and Service Tax. We have been issued provisional ID from VAT Department and Central Excise Department. I understand that I have to register with only one provisional ID. Now the problem is that since wrong PAN was registered in UPVAT we have not proceeded with the provisional Id of VAT department. All the details of the firm are correct when loggin

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To ensure implementation of GST by 1st April, 2017, Central Board of Excise & Customs (CBEC) has initiated the process of migration of its existing Central Excise/Service Tax assessees to GST from 9th January, 2017. A 24×7 Helpdesk (Through Toll-Free number and Email) started for the purpose – Goods and Services Tax – GST – Dated:- 10-1-2017 – Central Board of Excise & Customs (CBEC) has initiated the process of migration of its existing CENTRAL EXCISE/SERVICE TAX assessees to GST with effect from 9th January, 2017. As part of its efforts to ensure implementation of GST by 1st April, 2017, CBEC has taken steps to ensure that its existing taxpayers are migrated to GST in a simple, user-friendly and smooth manner. Once the existing regist

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ave to be updated in the ACES Portal www.aces.gov.in CBEC has made available a 24×7 HELPDESK (TOLL-FREE NO 1800-1200-232, EMAIL: cbecmitra.helpdesk@icegate.gov.in) for the purpose of assisting existing CENTRAL EXCISE/SERVICE TAX assessees. GSTN also has a HELP DESK number: 0124-4688999 and GSTN email address is: help@gst.gov.in A Step-by-Step Taxpayers User guide for Migration is available at www.aces.gov.in and at www.cbec.gov.in CBEC is also sending Emails/recorded telephonic messages to all registered CENTRAL EXCISE / SERVICE TAX assessees requesting them to migrate to GST. Outreach programmes such as Awareness Workshops/ Training for CENTRAL EXCISE/SERVICE TAX assessees are being organized all over India at the Commissionerates and Divi

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 10-1-2017 – Evidence The adjudication procedure in tax matters are not of a elaborate one and only summary nature of trial. However the evidence plays a vital role in this procedure. A show cause notice issued by the authority is to enclose the documents/information relied on by him to the assessee. Likewise the assessee, while giving reply to the show cause notice, along with the reply he is to submit documents as evidence in support of his defence. If the evidences put forth by the assessee have not been taken by the adjudicating authority, then it will amount to violation of the principles of Natural Justice. The authorities may presume certain documents as to evidence to this case. The Goods and Services Tax Act, 2016 (Model law) ( Act for short) provides for the admissibility of certain documents as evidence and also the provisions for presumption as to documents in certain cases. Admissibility of documents as evi

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ny device that receives, stores and processes data, applying stipulated processes to the information and supplying results of these processes and includes the hard disc thereof or a mirror image of hard disc thereof. Section 126(3) provides that where over any period, the functioning of storing or processing information for the purposes of any activities regularly carried on over that period was regularly performed by that computers, whether- by a combination of computers operating over that period; or by different computers operation in succession over that period; or in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers, all the computers used for that purpose during that period shall be treated for the purposes of Section 126 as constituting a single computer and references in this Section to a computer shall be construed accordingly. A statement contained in a document and inclu

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ed or is derived from information supplied to the computer in the ordinary course of the said activities. Certificate as evidence Section 126(4) provides that in any proceedings under this Act and the rules made there under where it is desired to give a statement in evidence by virtue of this Section, a certificate doing any of the following things- identifying the document containing the statement and describing the manner in which it was produced; giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer; dealing with any of the matters to which conditions mentioned in Section 126(2) relate, and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities, shall be evidence of any matter stated in the certificate; it is sufficient for a matter to be stated

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as been seized from the custody or control of any person under the Act or any other law; or has been received from any place outside India in the course of any proceedings under the Act or any other law and such documents is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall- unless the contrary is proved by such person, presume- the truth of the contents of such document; that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the Court may reasonable assume to have been signed by, or to be in the handwriting of, any particular person, is in that person s handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; admit the document in evidence notwithstanding that it is not duly stamped, if such document is otherwise admissible in evid

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 10-1-2017 – Dear Professional Colleague, MIGRATION TO GST – Assistance for transition Enrolment of existing registrants in indirect taxes was made open for the assessees presently registered with State Tax or VAT in Puducherry, the first in the Country (along with Sikkim), from November 8, 2016. On the same day, GST System Portal www.gst.gov.in ( GSTN Portal ) was launched by the Government of India. Since then, the migration process is going on full swing in different States as per the enrolment schedule provided by the GSTN (as amended). As an endeavour to see early light of GST, the Central Board of Excise and Customs ( the CBEC ), has created a separate tab, titled: MIGRATION TO GST, on the CBEC website: www.cbec.gov.in. The new tab contains 5 documents/letters, marking migration of existing Central Excise/ Service tax assesses to GST, as one of the priority tasks. In this regard, following documents are uploaded on the CBE

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ther action is required to be taken in terms of the Guidance Note by such assessee as a Central Excise/Service Tax assessee. In order to migrate to GST, an assessee needs to have a provisional ID and password. These details can be obtained by logging into ACES portal (www.aces.gov.in) and also being obtained from GSTN and assessee may periodically log in to see their status. Provisional IDs would be issued to only those assessees who have a valid PAN associated with their registration. In case the Central Excise or Service Tax registration does not have a valid Income Tax PAN number, the assessee needs to obtain the PAN number and update his registration details on to ACES portal before he can be migrated to GST. An assessee may not be provided a Provisional ID in the following cases: The PAN associated with the registration is not valid. The PAN is registered with State Tax authority and Provisional ID has been supplied by the said State Tax authority. There are multiple CE/ST registr

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L GST LAW (With Draft Rules on Registration, Payment, Invoice, Returns and Refund) We are pleased to announce release of our Handbook on Goods and Services Tax, titled, GUIDE TO REVISED MODEL GST LAW (With Draft Rules on Registration, Payment, Invoice, Returns and Refund) [3rd Edition]. This Guide to Revised Model GST Law, containing gist of all the provisions of the Model GST Law and the Draft Rules, at one place, will definitely be a building block for smooth sailing towards GST. KEY FEATURES OF THE BOOK Highlights of changes in Revised Model GST Law for easy understanding Constitutional Amendments and likely date of GST implementation GST – Need & Necessity, Overview and Model for India Discussion/analysis on Revised Model GST Law along with its comparison with First Model GST Law Analysis of meaning of the terms Supply , Goods and Services in GST Gist of documents, information, procedure, etc. required for migration of existing registrants in GST Discussion on various domains –

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 10-1-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN TRANSITIONAL PROVISIONS-PART-XII 197. Transitional provisions for availing Cenvat credit in certain cases This provision has been added to as to provide for treatment of such cenvat which was reversed before the appointed day due to non-payment of consideration within a period of 3 months. This provision states that in such situation such credit can be reclaimed provided that the taxable person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. This provision may be a welcome step but it s also difficult to implement and brings with it restrictions.

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 9-1-2017 Last Replied Date:- 9-1-2017 – There are number of returns prescribed under GST law. Different returns are prescribed with due date of filing . We will discuss all provision of various return to be filed one by one. Statement of outward Supply [ Section-32] A registered taxable person shall furnish electronic statement of the details of outward supplies of goods and services for the tax period on or before the 10th of succeeding tax period other than the following : Input service distributor Non resident taxable person Taxable person u/s 9 [ Composition Scheme ] Person who is deducting at source Person collecting tax at source The Detail of Outward supplies shall include invoice, debit notes, credit notes and revised invoices issued during tax period. Every RTP who has been communicated the details under section 33[3] and Section 33[4] by recipient of supplies , can either accept or reject the detail so communicat

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9 [ Composition Scheme ] Person who is deducting at source Person collecting tax at source Return shall be filed in GSTR -2 after the end of 10th day but before 15th day of the following month from the end of tax period. Every RTP who has furnished the detail under point no.1 and remain unmatched u/s 37 and 38 shall rectify the error and omission and shall pay interest on short payment of tax, if any. No rectification for point no. 1 shall be allowed after furnishing the return u/s 34 for the month of September following the end of financial year or furnishing the annual return which ever is earlier. Returns [ Section- 34 ] A registered taxable person shall furnish the return electronically of inward and outward supplies of goods and / or services , input tax credit, tax payable , tax paid and other particular as may be prescribed other than the following person: Input service distributor Non resident taxable person Taxable person u/s 9 [ Composition Scheme ] Person who is deducting a

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under point no. 1 ,2 and 4 find any error or omission, he may rectify the omission or error in the return of the month or quarter subject to the payment of interest . But the above error or omission shall not form finding of Audit, Inspection, scrutiny or enforcement . Provided , no rectification shall be allowed after furnishing the return u/s 34 for the month of September following the end of financial year or furnishing the annual return which ever is earlier First Return [ Section 35 ] Every RTP who has made outward supply in the period between the date of liability to date of registration shall file the first return after grant of registration . Claim of input tax credit and provisional acceptance [ Section 36] Every RTP shall claim input tax credit as per the condition and restriction thereof on self assessed basis and take credit in his electronic credit ledger. The above credit can be utilized against self assessed outward tax liability. Matching, reversal and reclaim of input

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mmunicated to supplier and recipient. If outward tax liability found to be excess of reduction in input tax credit shall be informed to both. If the discrepancy has not been rectified by recipient in his return within month , the amount shall be added to the outward tax liability of supplier. This addition shall be along with interest u/s 45. If the credit note is accepted and corresponding reduction is done by recipient in his return . Interest shall be refunded to supplier . Annual Return [ Section 39 ] Every RTP except the following shall furnish annual return on or before 31st December in GSTR -9 following the end of financial year. Input service distributor Non resident taxable person Casual Taxable Person Person who is deducting at source Person collecting tax at source Every RTP who has to get his account audited under Section 53[4] shall furnish the annual return under point no.1 electronically for every financial year along with audited financial statement and reconciliation t

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