Goods and Services Tax

India s growth to accelerate further due to GST: Jaitley – Goods and Services Tax – GST – Dated:- 24-4-2017 – Washington, Apr 23 (PTI) India continues to be the fastest growing major economy in the world and its growth will accelerate further due to factors like implementation of GST, Finance Minister Arun Jaitley said. The minister also said the scrapping of old ₹ 500 and ₹ 1,000 notes will increase tax compliance and reduce threat of counterfeit currency. India continues to be the fastest growing major economy in the world…The currency reform initiative will move the Indian economy to a less cash trajectory, increase tax compliance and reduce the threats from counterfeit currency which acts as a source of terror funding, he

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Goods and Services Tax – GST – Dated:- 24-4-2017 – At the third meeting of the Governing Council, NITI Aayog, the CEO, NITI, Shri Amitabh Kant, apprised the gathering of the work done by Niti Aayog for transforming the economy and cooperation with States in the sectors of education, health, infrastructure etc. He spoke of the work done by the sub-groups of Chief Ministers on rationalisation of Centrally Sponsored Schemes, Swachh Bharat Mission and Skill Development. He outlined initiatives taken in areas such as agriculture, poverty elimination, health, education, digital payments, disinvestment, coastal zone and island development etc. He said that NITI will work with States to improve basic services and infrastructure, in districts and r

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been prepared with inputs from the states. He noted that there were over 300 specific action points that had been identified, covering the whole gamut of sectors. The period of the Action Agenda coincided with the period of the 14th Finance Commission s award. This gave stability to the funding estimates of both Centre and States. He solicited the inputs and support of the states in taking the vision forward. Revenue Secretary Shri Hasmukh Adhia made a presentation on GST, explaining the benefits of the system and the way forward. He urged the Chief Ministers to expedite the enactment of State GST Acts. Madhya Pradesh Chief Minister, Shri Shivraj Singh Chouhan, made a presentation on doubling of farmers income. He touched on areas such as

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Goods and Services Tax – Started By: – arun aggarwal – Dated:- 23-4-2017 Last Replied Date:- 25-4-2017 – SirI am a registered dealer and buying goods after paying vat of 13.5% locally and selling them on CST at the rate of 2%, and without claiming any refund adjusting the same in the other trading.Want to know that what will be the status of any input credit left with me when GST takes over and I will have no stocks but input creditArun – Reply By KASTURI SETHI – The Reply = Still so many rules are at draft stage. Picture will be clear only after finalisation of all GST Rules. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Only Telengana State has passed the SGST Bill. Other States have not yet come to the picture. As rightly said by Shri

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sees. – Reply By Govind Gupta – The Reply = Hi Arun, you are saying that what happens to the credit for goods which are not with you, i am not sure if i have understood your question correctly. – Reply By KASTURI SETHI – The Reply = Dear Querist, Sh.Govind Gupta has rightly raised query. How the balance of cenvat credit would be in your Cenvat Account without physical stock on the appointed day ? Pl. clarify your query. – Reply By arun aggarwal – The Reply = Sir I am referring to the case of vat and cst , where I buy goods locally after paying vat of 13.5% and selling them to the other state on 2% cst . So I have vat input left with me local vat – cst so no physical stock but balance input.It is not CenvatArun – Reply By MUKUND THAKKAR – Th

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 22-4-2017 Last Replied Date:- 30-12-1899 – Dear Professional Colleague, Key highlights of Draft GST Rules on Accounts & Records, Appeals & Revision and Advance Ruling In order to engage with the stakeholders and invite comments from the public at large, recently, the Central Government has issued 3 more Draft Goods and Services Tax ( GST ) Rules viz. Draft GST Rules on Accounts & Records, Appeals & Revision and Advance Ruling, on April 19, 2017, making a total of 14 Draft Rules as on date. We are summarising herewith key pointers of the 3 new Draft Rules, for your easy digests: Key highlights of the Draft GST Rules on Accounts & Records: The Draft GST Rules on Accounts & Records provides clarity on various aspects including maintenance of accounts by registered persons, generation & maintenance of electronic records and records to be maintained by owner or operator of godown or warehouse and transpor

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e stored including goods stored during transit. If any taxable goods are found to be stored at any place(s) other than those declared above, without the cover of any valid documents, the proper officer shall determine the amount of tax payable on such goods as if such goods have been supplied by the registered person. Every registered person manufacturing goods shall maintain monthly production accounts, showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof. Every registered person supplying services shall maintain the accounts showing the quantitative details of goods used in the provision of each service, details of input services utilised and the services supplied. Books of account including any electronic form of data stored on any electronic device, shall be kept at the principal place of business and at every related place(s) of business mentioned in t

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ion: The Draft GST Rules on Appeals & Revision provides clarity on various aspects including filing of appeal or application to the Appellant Authority/Appellant Tribunal, production of additional evidence before the Appellate Authorityor the Appellate Tribunal, Appeal to the High Court, disqualification for misconduct etc., in the following manner: An appeal to the Appellate Authority shall be filed in FORMGSTAPL-01 [either electronically or otherwise] and an appeal to the Appellate Tribunal shall be filed in FORM GST APL-05 [electronically] and a provisional acknowledgement shall be issued to the appellant immediately. A hard copy of the appeal shall be submitted in triplicate in case of appeal to the Appellate Authority and in quintuplicate in case of appeal to the Appellate Tribunal,along with a certified copy of the decision or order appealed against along with the supporting documents within 7 days of filing of the appeal. Thereafter, a final acknowledgement, indicating appea

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l for rectification of errors. Additional evidence cannot be produced before the Appellate Authority or the Appellate Tribunal, whether oral or documentary, other than the evidence produced during the course of the proceedings before the adjudicating authority or, as the case may be, the Appellate Authority except in specified circumstances viz., lower authority refusing to admit evidence, prevention by sufficient cause, order passed without giving sufficient opportunity to adduce evidence. The Draft GST Rules on Appeals and Revision can be accessed at following link: Draft GST Rules on Appeals & Revision Key highlights of the Draft GST Rules on Advance Ruling: The Draft GST Rules on Advance Ruling covers various aspects including qualification and appointment of members of the Authority for Advance Ruling, form and manner of application to the Authority for Advance Ruling, certification of copies of the advance rulings pronounced by the Authority, form and manner of appeal to the

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ntained in GST are also onerous requiring the assessees to maintain detailed list of records/information in GST which is not going positive towards ease of doing business and shall entail increase in compliance costs. It may be noted that the CBEC has invited comments on the Draft GST Rules by April 27, 2017. The Government aims to implement the much awaited indirect tax reform i.e. GST from July 1, 2017, and to that effect the final nod to the new sets of Draft Rules as well as fixation of GST rates for goods and services will be done in the next meeting of the GST Council scheduled on 18-19 May, 2017. It is indeed the best time for the Trade and Industry to gear up and present their likely issues so that necessary changes are incorporated by the Government. Readers are requested to write back to us for any inputs/ suggestions on Draft Rules for our compilation and submission to Government. Hope the information will assist you in your Professional endeavours. In case of any query/ inf

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 22-4-2017 – Section 9 of the Act deals with levy and collection of tax. Section 9(5) provides that the Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services. Where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax. Where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce o

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d by the aggregate value of taxable supplies returned to the suppliers during the said month. Concerned supplier The explanation to Section 52(14) defines the expression concerned supplier as the supplier of goods or services or both making supplies through the electronic commerce operator. Collection of tax Section 52(1) provides that every electronic commerce operator, not being an agent, shall collect an amount calculated at such rate not exceeding 1% as may be notified by the Government on the recommendations of the Council, the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. The power to collect the tax by this mode shall be without prejudice to any other mode of recovery from the operator. Payment Section 52(3) provides that the amount collected shall be paid to the Government by the operator within 10 days after the end of the month in which such collection is made. The amo

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h it, including the supplies of goods or services or both returned through it, and the amount collected during the said financial year, in such form and manner as may be prescribed, before the 31st day of December following the end of such financial year. Rectification of statement Section 52(6) provides that if any electronic commerce operator, after furnishing a statement discovers any omission or incorrect particulars therein, other than a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the statement to be furnished for the month during which such omission or incorrect particulars are noticed, subject to payment of interest. No such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of statement for the month of September following the end of the financial year or the actual date of furnishing the relevant annual statement, whichever

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which is not rectified by the supplier in the valid return or the electronic commerce operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of the outward supplies furnished by the operator is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such manner as may be prescribed. Section 52(11) provides that the concerned supplier, in whose output tax liability any amount has been added, shall pay the tax payable in respect of such supply along with interest at the rate specified on the amount so added from the date such tax was due till the date of its payment. Rule 19 of Returns provides that the following details relating to the supplies made through an e-commerce operator, as declared in Form GSTR – 8, shall be matched with the corresponding details declared by the supplier

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lier electronically in Form GST MIS – 5 and to the e-commerce portal electronically in Form GST MIS – 6 through the common portal on or before the last date of the month in which the matching has been carried out. A supplier to whom any discrepancy is made available may make suitable rectifications in the Statement of outward supplies to be furnished for the month in which the discrepancy is made available. An operator to whom any discrepancy is made may make suitable rectifications in the statement to be furnished for the month in which the discrepancy is made available. Where the discrepancy is not rectified, an amount to the extent of discrepancy shall be added to the input tax liability of the supplier in his return in Form GSTR – 3 for the month succeeding the month in which the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically on the common portal in Form GST

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t may be taken under Section 122, be liable to a penalty which may extend to ₹ 25,000/- Registration Section 24 (ix) of the Act provides that the persons who supply goods or services or both, other than supplies specified under Section 9(5), through such electronic commerce operator who is required to collect tax at source under Section 52 is compulsorily required to be registered under this Act. Likewise every electronic commerce operator under Section 24 (x) is compulsorily required to be registered under this Act. Any person required to collect tax at source shall electronically submit an application, duly signed, in Form GST REG – 07 for grant of registration through the common portal. The proper officer may grant registration after due verification and issue a certificate of registration in Form GST REG – 06 within 3 working days from the date of submission of the application. Where upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is sati

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 22-4-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are actionable claim, address of delivery, address on record, adjudicating authority and agent. Definitions (Section 2) Section (2) of the CGST Act provides for 119 definitions of various terms and expressions used in the Act. It has been provided that words or expressions which are not defined in CGST Act but defined in other Acts, viz, IGST Act, UTGST Act and Goods and Services Tax (Compensation to States) Act shall have same meanings as defined in those Acts. It may be noted that Section (2) does not have reference to SGST Act. In case of the State of Jammu & Kashmir, it provides that any reference to a law in CGST Act which is not in force in the State of Jammu & Kashmir shall have reference to any corresponding law which is in force in the State of Jammu & Kashmir. Actionable Claim [S

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e. Civil courts should recognize such claim as worthy of affording grounds for relief. Such claims or interest could be existing, accruing, conditional or contingent. Actionable claims can be assigned Actionable claims can be enforced in a court of law. Examples of claims which are 'actionable claims': Claim for arrear rent. Claim for rent to fall due in future. An option offered to repurchase the property once sold. Benefit of a contract giving option to purchase the land. Contract for purchase of goods is endorsed by the purchaser, by writing on the back of the contract under his signature, that he has sold all his rights and interest in the goods purchased under the said contract to a certain person who is named and properly identified in such endorsement. Unsecured debts Wining from lotteries Right to claim and recover Insurance money Claim for unpaid dower (in case of muslim women) According to definition of 'goods' in section 2(32), actionable claims are considere

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the time being in force. Address of delivery is one of the important factors which help in determination of nature of transaction like inter-state or intra-state supply. Address on record [Section 2(3)] It is the address of recipient as is available in the records of supplier Location of recipient of supply of goods and / or services is one of the factors to be considered for the purpose of determination of nature of transaction like inter-state or intra state. This factor is equally relevant irrespective of whether the recipient is registered taxable person or unregistered taxable person. Address on record would imply address as recorded in the records of supplier of goods or services. Such address may therefore, be different from the registered address or address of head office, factory etc. Even the address on record may be different from that in the records of the Department. It may be noted that address of delivery represent the place where goods and/ or services are to be delive

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Demand confirmed by the Court – Article 8 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 8 – 8. Demand confirmed by the Court The jurisdi

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Article 7 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 7 – 7. Appeal to the High Court (1) An appeal to the High Court under sub-secti

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Article 6 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 6 – 6. Order of Appellate Authority or Appellate Tribunal (1) The Appellate Authority shall, along with its order under sub-section (11) of section 107 of the Act, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed. (2) The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount

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Article 5 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 5 – 5. Production of additional evidence before the Appellate Authority or the Appellate Tribunal (1) The appellant shall not be allowed to produce before the Appellate Authority or the Appellate Tribunal any evidence, whether oral or documentary, other than the evidence produced by him during the course of the proceedings before the adjudicating authority or, as the case may be, the Appellate Authority except in the following circumstances, namely – (a) where the adjudicating authority or, as the case may be, the Appellate Authority has refused to admit evidence which ought to have been admitted; or (b) where the appella

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ting the reasons for its admission. (3) The Appellate Authority or the Appellate Tribunal shall not take any evidence produced under sub-rule (1) unless the adjudicating authority or an officer authorised in this behalf by the said authority has been allowed a reasonable opportunity – (a) to examine the evidence or document or to cross-examine any witness produced by the appellant; or (b) to produce any evidence or any witness in rebuttal of the evidence produced by the appellant under sub-rule (1). (4) Nothing contained in this rule shall affect the power of the Appellate Authority or the Appellate Tribunal to direct the production of any document, or the examination of any witness, to enable it to dispose of the appeal. – Statutory Provis

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Article 4 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 4 – 4. Application to the Appellate Tribunal (1) An application to the Appellate Tribunal under sub-section (3) of section 112 of the Act shall be madeelectronically or otherwise, in FORM GST APL-07, along with supporting documents on the common portal. (2) A certified copy of the decision or order appealed against shall be submitted within seven days of filing the application

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Article 3 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 3 – 3. Appeal to the Appellate Tribunal (1) An appeal to the Appellate Tribunal under sub-section (1) of section 112 of the Act shall be filed along with the supporting documents either electronically or otherwise as may be notified by the Registrar, in FORM GST APL-05, on the common portal and a provisional acknowledgement shall be issued to the appellant immediately. (2) A memorandum of cross-objections to the Appellate Tribunal under sub-section (5) of section 112 of the Act shall be filed either electronically or otherwise as may be notified by the Registrar, in FORM GST APL-06. (3) The appeal and the memorandum of cr

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Article 2 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 2 – 2. Application to the Appellate Authority (1) An application to the Appellate Authority under sub-section (2) of section 107 of the Act shall be made in FORM GST APL-03, along with supporting documents, either electronically or otherwise as may be notified by the Commissioner. (2) A certified copy of the decision or order appealed against shall be submitted within seven da

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Article 1 – Final Rules (Draft) – Appeals and Revision – GST – Appeals and Revision – Draft Rules – 19-4-2017 – Article 1 – Chapter – Appeals and Revision 1. Appeal to the Appellate Authority (1) An appeal to the Appellate Authority under sub-section (1) of section 107 of the Act shall be filed in FORM GST APL-01, along with the supporting documents, either electronically or otherwise as may be notified by the Commissioner, and a provisional acknowledgement shall be issued to the appellant immediately. (2) The grounds of appeal and the form of verification as contained in FORM GST APL-01 shall be signed in the manner specified in rule Registration.19. (3) A certified copy of the decision or order appealed against shall be submitted within

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Article 5 – Final Rules (Draft) – Advance Ruling – GST – Advance Ruling – Draft Rules – 19-4-2017 – Article 5 – 5. Certification of copies of the advance rulings pronounced by the Authority A copy of the advance ruling pronounced by the Appellate Authority for Advance Ruling and duly signed by the Members shall be sent to- (a) the applicant and the appellant; (b) the concerned officer of central tax and State / Union territory tax; (c) the jurisdictional officer of central tax and State / Union

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Article 4 – Final Rules (Draft) – Advance Ruling – GST – Advance Ruling – Draft Rules – 19-4-2017 – Article 4 – 4. Form and manner of appeal to the Appellate Authority for Advance Ruling (1) An appeal against the advance ruling issued under sub-section (6) of section 98 of the Act shall be made by an applicant on the common portal in FORM GST ARA-2 and shall be accompanied by a fee of ten thousand rupees, to be deposited in the manner specified in section 49 of the Act: (2) An appeal against th

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Certification of copies of the advance rulings pronounced by the Authority – Article 3 – Final Rules (Draft) – Advance Ruling – GST – Advance Ruling – Draft Rules – 19-4-2017 – Article 3 – 3. Certific

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Article 2 – Final Rules (Draft) – Advance Ruling – GST – Advance Ruling – Draft Rules – 19-4-2017 – Article 2 – 2. Form and manner of application to the Authority for Advance Ruling (1) An application for obtaining an advance ruling under sub-section (1) of section 97 of the Act shall be made on the common portal in FORM GST ARA-1 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49 of the Act. (2) The application referred to in sub-ru

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Qualification and appointment of members of the Authority for Advance Ruling – Article 1 – Final Rules (Draft) – Advance Ruling – GST – Advance Ruling – Draft Rules – 19-4-2017 – Article 1 – 1. Qualif

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Rule 3 – Final Rules (Draft) – ACCOUNTS AND RECORDS – GST – ACCOUNTS AND RECORDS – Final Draft Rules – 11-6-2017 – Rule 3 – 3. Records to be maintained by owner or operator of godown or warehouse and transporters (1) Every person required to maintain records and accounts in accordance with the provisions of sub-section (2) of section 35, if not already registered under the Act, shall submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrollment number shall be generated and communicated to the said person. (2) The person enrolled under sub-rule (1) as aforesaid

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Rule 2 – Final Rules (Draft) – ACCOUNTS AND RECORDS – GST – ACCOUNTS AND RECORDS – Final Draft Rules – 11-6-2017 – Rule 2 – 2. Generation and maintenance of electronic records (1) Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within reasonable period of time. (2) The registered person maintaining electronic records shall produce, on demand

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Rule 1 – Final Rules (Draft) – ACCOUNTS AND RECORDS – GST – ACCOUNTS AND RECORDS – Final Draft Rules – 11-6-2017 – Rule 1 – CHAPTER- ACCOUNTS AND RECORDS 1. Maintenance of accounts by registered persons (1) Every registered person shall keep and maintain, in addition to the particulars mentioned in sub-section (1) of section 35, a true and correct account of the goods or services imported or exported or of supplies attracting payment of tax on reverse charge along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills. (2) Every registered person, other than a person paying tax under section 10, shall maintain accounts of stock in respect of goods received and supplied by him, and such account shall contain particulars of opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and balance of stock inc

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goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein. (6) If any taxable goods are found to be stored at any place(s) other than those declared under sub-rule (5) without the cover of any valid documents, the proper officer shall determine the amount of tax payable on such goods as if such goods have been supplied by the registered person. (7) Every registered person shall keep the books of account at the principal place of business and books of account relating to additional place of business mentioned in his certificate of registration and such books of account shall include any electronic form of data stored on any electronic device. (8) Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and there after correct entry shall be recorded and where the registers and other docum

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pal; (d) details of accounts furnished to every principal; and (e) tax paid on receipts or on supply of goods or services effected on behalf of every principal. (12) Every registered person manufacturing goods shall maintain monthly production accounts, showing quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof. (13) Every registered person supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied. (14) Every registered person executing works contract shall keep separate accounts for works contract showing – (a) the names and addresses of the persons on whose behalf the works contract is executed; (b) description, value and quantity (wherever applicable) of goods or services received for the execution of works contract; (c) description, value and

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 21-4-2017 Last Replied Date:- 8-5-2017 – Transition Provision in CGST Act,2017 with Rule Transition provision is one time provision which shall be applicable at the time of migration to GST on the appointed day. These provision may be said as most crucial because of migration of existing law in to GST and may face many challenges as well. Provisions have been well laid down in CGST Act,2017 and Rule of Transition. Migration of existing tax Payer -[ Section – 139] On and from appointed day , any person registered under any of the existing law and having PAN shall be provided provisional registration subject to certain condition as prescribed . After submission of certain documents as may be precribed , final registration shall be granted. Transition arrangement for input tax credit [Section -140] Transition Arrangement for Input Tax Credit 1. Registered Person [RP] other than person opting to pay tax u/s 10, may take credit

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an take such credit only if it is allowed in the existing law as well under this Act. Specify the following separately in Form GST TRAN-1. i] ITC availed under existing law before appointed day ii] ITC to be availed till appointed day. 3. RP who was not liable to be registered under the existing law, or engaged in the manufacture of exempted goods or provision of exempted services or who was providing work contract services and was availing the benefit of notification no. 26/2012 or first stage dealer or second stage dealer or registered importer or depot of manufacturer, shall take input on his stock on the appointed day subject to the following conditions . If the Input is used for taxable supply under this Act RP is entitle for input tax credit under this Act RP is in possession of Invoice or other duty payment documents Such Invoices were not more than twelve months old. Supplier of services is not eligible for abatement under this Act. Rule 1 [3] : a)i] RP shall be allowed to take

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tifiable Scheme is available subject to the following Such goods were not exempt or nil rated Document of procurement is available with RP Submit statement in GST TRAN-1 form , the supply of such goods in each of six tax period. Amount shall be credited in ECL in form GST PMT-2 [SGST Rule offering tax on MRP] 4. RP who is engaged in manufacturing of taxable as well as exempted goods or provision of taxable as well as exempted services shall be entitle to take credit under this Act. Amount of cenvat credit carry forward in existing return as per sub section- 1 and The amount of cenvat credit eligible in respect of input stock , semi-finished and finished goods on appointed day as prescribed in Sub rule- 3. 5. RP may take credit of eligible duties and taxes in respect of input or input services on or after the appointed date provided the duties of the such input or input services has been deposited by supplier under the existing law and the invoice has been recorded in the books within 3

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orward in return furnished under the existing law . If the original / revised return under the existing law has been filed within three months of appointed day. Such credit may be taken at any of the centralised place having the same PAN. 9. Where any cenvat has been reversed on account of non payment within three months under the existing law , can be reclaimed at the time of making payment of such services if the payment of such reversed amount has been made within three months from the appointed day. 10. The amount of credit under sub section 3, 4, and 6 shall be calculated in such way as may be prescribed. Explanation -1 for the purpose of sub section 3,4 and 6 , the expression eligible duties and taxes means i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957; ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975; iii) the additional duty leviable under su

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on (5) of section 3 of the Customs Tariff Act, 1975; (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985; (v) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; (vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; and (viii) the service tax leviable under section 66B of the Finance Act, 1994, in respect of inputs and input services received on or after the appointed day. Transition provision relating to Job work [Section 141] Where any input received has removed as such or removed after partial processing to a job worker for further processing, repair, testing, reconditioning or any other purpose as per the existing law before appointed day and such input are returned after the appointed day, no tax shall be payable if such go

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ovision [Section 142] 1. Where any goods on which duty has been paid is removed not earlier than six months before the appointed date , returned from the unregistered person within six months from the appointed day , the duty of refund shall be paid to registered person under the existing law. But if the goods are returned by registered person , return of goods shall be treated as supply of goods. 2. Where any contract has been entered before appointed day and the price of goods or services or both revised upward after the appointed day , RP here will issue supplementary invoice or debit notes within 30 days from the date of revision. Such revision shall be treated as supply under this Act. 3. Where any contract has been entered before appointed day and the price of goods or services or both revised downward after the appointed day, RP may issue credit note within 30 days from such revision and credit note shall be deemed to have been issued in respect of outward supply made under this

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ed under the existing law has been revised after the appointed date and if any credit arises shall be paid in cash. And in case of any demand , the same shall be recovered as arrear of tax under this Act. 8. Despite anything provided in section 12 , no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the State VAT. 9. Despite anything provided in section 13 , no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under chapter V of Finance Act,1994. 10. Where any input goods sent for approval basis as per the existing law, not earlier than six months before appointed day and such input are returned after the appointed day, no tax shall be payable if such goods are received within six months from the appointed day. The said period may be extended for another two months on sufficient cause. If the input is not returned within the stipulated period above then the tax shall be paid by

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-4-2017 – The GST law contains a unique provision on anti-profiteering measure as a deterrent for trade and industry to enjoy unjust enrichment in terms of profit arising out of implementation of Goods and Services Tax in India, i.e., anti-profiteering measure would obligate the businesses to pass on the cost benefit arising out of GST implementation to their customers. The provisions are contained in the GST law as per following provisions: CGST Act, 2017 Section 171 on Anti-profiteering measures IGST Act, 2017 Section 20 which stipulate that provisions of CGST Act, 2017 shall apply mutatis mutandis to IGST Act UTGST Act, 2017 Section 21 which stipulate that provisions of CGST Act, 2017 shall apply mutatis mutandis to UTGST Act SGST Act, 2017 Section 171 on Anti-profiteering measures Statutory Provisions Anti-Profiteering Measure (Section 171) The following is the text of section 171 of the CGST Act, 2017: Any reduct

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for first time and claimed as a major tax reform and that experience suggests that GST may bring in general inflation in the introductory phase. The Government wants that GST should not lead to general inflation and for this, it becomes necessary to ensure that benefits arising out of GST implementation be transferred to customers so that it may not lead to inflation. For this, anti profiteering measures will help check price rise and also put a legal obligation on businesses to pass on the benefit. This will also help in instilling confidence in citizens. Analysis of Anti-Profiteering Measure This is a new concept being tried out for the first time. The intention is to make it sure that whatever tax benefits are allowed, the benefit of that reaches to the ultimate customers and is not pocketed by trade. The power has been given to Central Government to constitute an authority to oversee whether the commensurate benefit of allowance of input tax credit or reduction in the tax rates ha

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rice of goods / services The reduction in prices on account of reduction in tax rates have actually resulted in a commensurate reduction in price of goods / services. Anti profiteering Measures Abroad Global experience suggest that anti-profiteering provisions are only effective if there is a significant lead-in time to allow the relevant authority to educate consumers and businesses as to their respective rights and obligations. The concept of anti- profiteering provision has been perhaps borrowed from Australia which was the first country to enact similar provisions when it replaced a series of inefficient taxes with a GST in July, 2000. The Australian Competition and Consumer Commission (ACCC) was charged with the responsibility of monitoring prices 12 months before the commencement of GST. The ACCC s focus was on educating consumers and businesses. This included the publication of pricing guidelines, communication strategies for different market segments and 'hot lines' for

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. Countries like Canada and New Zealand have also similar provisions. Implementation of Provision It is expected that there will be rules or guidelines for implementation of this provision in relation to who will implement this provision, constitution and business rules for authority to monitor, possible cost audit monitoring, from when this provision will be implemented and how authority will check and implement. Also, penalties, to be deterrent will also have to be determined in interest of customers as well as businesses. It will also have to be ensured that there is no hardship, harassment or undue interference by the Authority. At the same time, businesses are expected to be fair and reasonable as otherwise, market forces would lead to fair price determination in absence of any cartelization or unfair trade practice. To conclude, it can be said that the anti profiteering provision should be enforced in rare case as a exception, rather than rule and should not become a hindrance in

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 20-4-2017 – The provisions of service tax provide a uniform rate of tax to be levied from the service recipients except in cases of abatement. The provisions of excise law and VAT provide for various rate of tax according to the classification made by the respective Government. Four tier structure The GST Council recommended a four tier GST rate structure of 5%, 12%, 18% and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess. Under CGST Act Section 9 of the CGST Act, 2017 provides that there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, on the value determined under Section 15 and at such rates not exceeding 20% as may be notified by the Government on the recommendations of the Council. This will not be applicable on the supply of alcoholic liquor for human consump

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) of the Act provides that every electronic commerce operator not being an agent, shall collect an amount calculated at such not exceeding 1%, as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the condition with respect to such supplies is to be collected by the operator. TDS Section 51(1) of the Act provides that the Government may mandate a department or establishment of the Central Government or State Government or a local authority or Governmental agencies or such persons or category of persons as may be notified by the Government on the recommendations of the council to deduct tax @ 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply under a contract, exceeds ₹ 2,50,000/-. Under IGST Act Section 5(1) provides that there shall be levied a tax called the integrated goods and services tax on all inter

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r UTGST Act Section 7(1) of the Union Territory Goods and Services Tax Act, 2017 provides that there shall be levied a tax called the Union territory tax on all intra-State supplies of goods or services or both, except on supply of alcoholic liquor for human consumption, on the value and at such rates, not exceeding 20% as may be notified by the Central Government on the recommendations of the Council. Composition Cess Section 8(2) of the Goods and Services Tax (Compensation to States) Act, 2017 provides that the cess shall be levied on such supplies of goods and services as are specified in the Schedule. The following is the maximum rate at which GST compensation Cess may be collected- Pan Masala – 150% ad valorem; Tobacco and manufactured tobacco substitutes including tobacco products – ₹ 4175/- per 1000 sticks or 295% ad valorem or a combination thereof, but not exceeding ₹ 4175/- per 1000 sticks plus 295% ad valorem; Coal briquettes, ovoids, and similar solid fuels manu

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