Goods and Services Tax

Goods and Services Tax – GST – By: – sandeep saini – Dated:- 22-9-2016 Last Replied Date:- 4-11-2016 – Dear professional colleague, GST- a way forward for logistic industry India s globally infamous unending queue, uneasy checkmates at our border check posts, filing of waybills/entry permits, compliances under entry tax laws and local levies, are one of the prime reasons why transport costs hovered high for decades. But once the GST implemented , these challenges will become a thing of past, as GST will subsume most of Central taxes and State levies, eliminating the time wasting checkpoints and make diverse verticals across India more efficient through faster deliveries of goods and services. In other words, India a nation of multiple market today will transform into one common market backed by borderless, barrier-less systems permitting free movement of goods and services and therefore GST will facilitate Make in India by making one India . As per the estimates by the experts, logist

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mated that eliminating check point delays could keep trucks moving almost 6 hours more per day, which will results in additional movement of 164 kms per day. Due to above bottlenecks, logistics costs are higher than the wage bill or the cost of power and 3-4 times the international benchmark. The removal of bottlenecks becomes more important for India, as the share of roads in freight traffic is about 72 per cent, which is much higher in comparision to other countries and rising over time because of under investment in railways, therefore inter-state trade costs to be reduced significantly, due to excessive reliance on roads for movement of goods. According to world bank estimate about 20-30 per cent of inter-state trade cost is due to taxes. So, after imlementation of GST, these costs are expected to come down, which will boost inter-state trade and hence productivity growth within India. The Impact of GST on Logistic Industry The GST will enables the businesses viz. e-commerce to rej

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ts feel the contractual business could increase upto 50 per cent, after implementation of GST. The companies and logistic firms will be in a position to use fewer but bigger trucks to transport their consignments, further reducing pollution and curbing traffic congestion.And many companies would prefer to outsource logistic operations, as lower costs make this viable. Steps that logistic service providers need to undertake Develop a stong team to manage sophisticated technology enabled fufilment centre. Indentify focus Industries that need to revisit their supply chain and their immediate needs post GST implementation. Enhance technology capabilities and processes to adhere to new input tax credit system. Reconfigure current fleet size and type, to align to emerging needs. Issues need to be addressed under GST Entry tax is subsumed under GST via deleting the Entry 52 from State list given in Article 246 of constitution of India, but Article 243X/243H are not amended, because of which p

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that a virtual campaign named Move in India would be implemented besides Make in India . – Reply By Ganeshan Kalyani – The Reply = nice article.i would like to reproduce the extract of Model GST law for discussion,60. Power of inspection, search and seizure(1) Where the CGST/SGST officer, not below the rank of Joint Commissioner, has reasons to believe that -(a) a taxable person has suppressed any transaction relating to supply of goods and/or services or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under the Act or has indulged in contravention of any of the provisions of this Act or rules made thereunder to evade tax under this Act; or(b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act,he may authorize

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Goods and Services Tax – GST – By: – Ranjan Mehta – Dated:- 22-9-2016 Last Replied Date:- 26-9-2016 – Prelude:- Model GST law is in public domain since June 2016, President has given his assent to 101st Constitution Amendment Act, 2016 giving Central and State Govts power to levy GST on 08th September, 2016. However, till then there was nobody talking about the Excise Duty and its existence. GST has not yet been rolled out. Even the law is under preparation as yet. Then suddenly on 16.09.2016 what happened that everybody seems to be talking about it. Revenue secretary Mr. Hasmukh Adhia is tweeting one after another. So the big question as of now is that what happened which lead to such controversy and why everybody is discussing the very constitutional validity of Excise and Service Tax. The answer lies with the notification dated 16th September, 2016 which notified the 19 sections of the Constitution (One Hundred and First Amendment) Act, 2016. Notification:- Central Govt on 16.09.20

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of this entry the Central Government was allowed to levy excise on all the goods manufactured or produced in India. Now the new entry substituted by Constitution (One Hundred and First Amendment) Act, 2016 is as follows:- 84. Duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel; and (f) tobacco and tobacco products. ; This new entry substituted in place of earlier one which entitles Central Govt to levy Excise on these 6 items only. There is no entry in the Central list, which directly enable the Central Govt to levy duty of excise on goods other than the 6 mentioned above. Govt. response to the Controversy Ending days of confusion, the government has clarified that the notification of the provisions of the Constitution amendment Act for the goods and services tax (GST) does not take away the power of the central government t

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response correct ? Govt response keeping section 19 in the forefront of all the controversy is challengeable. This section 19 talks about laws in force in any state. Not in the whole India. Thus there is a view that this provision does not cover central levies. However the second leg of this section comes to save the Govt view once again, which says that earlier provisions shall continue to be in force until amended or repealed by a competent legislature or other competent authority. Thus this means that the laws amended by this Act shall not be amended so until such laws are repealed or one year elapses since the commencement of this act i.e. w.e.f. 15.09.2017 they shall automatically be repealed if not done so specifically. Further, there is another entry No. 97 to the Union List, which is a residuary entry in that list 97. Any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. The Govt can also contemplate to include levy of

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give central Govt absolute power to levy service tax which read as follows:- 268A 1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2). (2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (1) shall be- (a) collected by the Government of India and the States; (b) appropriated by the Government of India andthe States, in accordance with such principles of collection and appropriation as may be formulated by Parliament by law. This article 268A is also deleted by sec 7 of Constitution (101st) Amendment Act, 2016. The website of the CBEC also displays the above 2 provisions to establish the constitutional validity of service tax law. From the above discussion we can feel that due to deletion of these 2 provisions Service Tax will also be in peril like in case of Excise. BUT there is a technical glitc

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Goods and Services Tax – GST – By: – niranjan gupta – Dated:- 22-9-2016 Last Replied Date:- 26-9-2016 – Introduction The general meaning of registration is a method of officially recording something. Usually something is registered to claim more rights, or to protect ownership, or because the law says it must be registered to be used legally. Presently, to do business in India there are a list of registration under Direct & Indirect Taxation law. Indirect taxation majorly covers the Customs, Central Excise, Service Tax, VAT/CST, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes as applicable time to time. VAT, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes are governed by the State Government and Customs, Central Excise, Service Tax and Central Sales Tax are governed by the Central Government. The Central Government and State Government adjoined their hands to bring GST for doing business in a simplif

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n which he becomes liable to registration. [S.19] In case of a person, other than an Input Service Distributor, is registered under earlier law, it shall not be necessary for him to apply for fresh registration under the S. 19 and he shall follow the procedure as may be prescribed in this behalf. Threshold Limit under GST law Under GST model, it is proposed that every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds ₹ 9 lakh. However, this limit is ₹ 4 lakh for the persons conducting business in North East states including Sikkim. It is also proposed in the GST model that in case the aggregate turnover consists of only goods and/or services which are not liable to tax under this Act, that supplier shall not be liable to registration. The following categories of persons shall be required to be registered under this Act, irrespective of the

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all be treated as the supply of goods by the principal referred to in section 43A, and the value of such goods shall not be included in the aggregate turnover of the registered job worker. Threshold Limit under Central Excise, Service Tax and respective State Laws Service Tax: Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees shall make an application for registration within a period of thirty days of exceeding the aggregate value of taxable service of nine lakh rupees. Central Excise: The exemption is provided in terms of payment of excise duty as SSI. The exemption is available for first clearances up to an aggregate value not exceeding one hundred and fifty lakh rupees made. VAT: Following table shows the general threshold limit under respective VAT laws: Region State Turnover WCT North Delhi ₹ 20 lakh in the current year Total contract amount received exceeds ₹ 20 lakh North Haryana ₹ 5 lakh in th

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s ₹ 5 lakh Central MP Turnover exceeds ₹ 5 lakh Turnover exceeds ₹ 5 lakh Central Bihar Turnover exceeds ₹ 5 lakh Every contractor executing has to get registration irrespective of the turnover. Central Chhattisgarh Turnover exceeds ₹ 10 lakh If taxable turnover of the dealer equals or exceeds the limit prescribed. Central Jharkhand Turnover exceeds ₹ 5 lakh Dealer involved in Works Contract and leasing with a turnover exceeding ₹ 25,000. Central Orissa Turnover exceeds ₹ 5 lakh ₹ 50,000 South AP Turnover exceeds ₹ 50 lakh for twelve consecutive month Executing works contract of the value exceeding ₹ 7.5 lakh for Government or local authority or opted for composition South Karnataka Taxable turnover is likely to exceed ₹ 7.5 lakh at any time during the year Taxable turnover exceed ₹ 62,500 in any month. If taxable turnover of the dealer equals or exceeds the limit prescribed. South Kerala Total Turnover durin

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kh Total contract amount received exceeds ₹ 50,000 East Meghalaya Gross taxable turnover exceeds ₹ 1 lakh Total contract amount received exceeds ₹ 1 lakh East Mizoram Gross taxable turnover exceeds ₹ 3 lakh Total contract amount received exceeds ₹ 3 lakh East Tripura Gross taxable turnover exceeds ₹ 3 lakh during any period of 12 consecutive months Nil East Nagaland Gross taxable turnover exceeds ₹ 3 lakh Total contract amount received exceeds ₹ 3 lakh Registration under GST Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration. [S. 19(4)] A non-resident taxable person may be granted registration under sub-section (1) on the basis of any other document as may be prescribed.[S. 19(4A)] The registration or the Unique Identity Number, shall be granted or, as the case may be, rejected after due verification in the manner and within such period as

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each business vertical, subject to such conditions as may be prescribed. A person may get himself registered voluntarily. Following person shall require to obtain a Unique Identification Number for the purpose as notified including refund of taxes on the notified supplies of goods and/or services received by them: any specialized agency of the United Nations Organization; any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947); Consulate or Embassy of foreign countries; and any other person or class of persons as may be notified by the Board / Commissioner. Special Provision for casual taxable person and non-resident taxable person The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period of ninety days from the effective date of registration. [S. 19A(1)] The proper officer may, at the request of the said taxable person, extend the af

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giving a notice to show cause and without giving the person a reasonable opportunity of being heard. [S. 20(3)] Any rejection or, as the case may be, approval of amendments under the CGST Act/SGST Act shall be deemed to be a rejection or approval of amendments under the SGST Act/CGST Act. [S. 20(4)] Cancellation of Registration The registration certificate shall be cancelled either on his own motion by the proper officer or on an application filed by the registered taxable person or by his legal heirs (in case of death of such person), as the case may be, under the following circumstances: Discontinuance/merger/demerger/amalgamation of business or otherwise disposed of. Change in constitution of business. The registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed. A person paying tax under section 8 has not furnished returns for three consecutive tax periods. Any taxable person, other than a person specified in point (e),

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ion or the output tax payable on such goods, whichever is higher. In case of capital goods, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by the percentage points as may be prescribed in this behalf or the tax on the transaction value of such capital goods, whichever is higher. Revocation of cancellation of registration Every registered person whose registration has been cancelled by the proper officer suo motu, may apply for revocation of registration within 30 days from the date of cancellation order. The proper officer may either revoke the cancellation of the registration or reject the application for revocation for good and sufficient reasons. The proper shall require to serve a proper show cause notice or give a reasonable opportunity of being heard before rejecting the application for revocation. Revocation of cancellation of registration under the CGST Act / SGST Act shall be deemed to be a revocation of cancellatio

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Goods and Services Tax – Frequently Asked Questions (FAQ) on GST – as released by CBEC as on 21.09.2016 – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 22-9-2016 – GST – FAQ – Chapter wise / Question Wise As part of this capacity building exercise, the NACEN has prepared a compilation of Frequently Asked Questions (FAQ) based on inputs gathered while conducting training and interactive sessions, as a training tool for helping the officers as well as public, to get acquainted with the Model GST Law and its nuances. The FAQs have been prepared and reviewed by a team of officials from both Centre and States.

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 21-9-2016 Last Replied Date:- 24-9-2016 – In India, we are entering into GST regime from the existing indirect tax regime which is a major change in the taxation area. The Constitution has been amended authorizing the Central Government and State Government to levy GST, IGST. The Hon ble President India has also notified the GST Council which began its functioning for the smooth adoption of GST which is expected with effect from 01.04.2017. The new tax rates are to be determined by the Council. EYGM Limited has brought a book entitled WORLDWISE GST, VAT, SALES TAX GUIDE, 2016 (as on 01.01.2016). This book describes the indirect tax systems in 115 countries including India. For each country the book gives – At a glance, what are the basic features of the major indirect tax in this country? What is the scope and who is taxable? What are the rates and how has the country defines the time of supply? When can taxpayers reco

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s – 1.5% HT Rates – 1% 5 Australia GST 01.07.2000 AUD – 75000 AUD – 150000 for non profit bodies 10% 6 Austria VAT 01.01.1973 EUR 30000 Standard – 19%, 20% Reduced – 10%, 13% 7 Azerbaijan VAT 01.01.1992 AZN 200000 for a period 12 consecutive months 18% 8 Bahamas VAT 01.01.2015 BSD 100000 7.5% 9 Barbados VAT 01.01.19974 BBD200000 Standard -17.5%; Reduced – 7.5% 10 Belarus VAT 19.12.1991 No Standard – 20%; Reduced-10% 11 Belgium VAT 01.01.1971 No Standard -21% Reduced -6%,12% 12 Bolivia VAT July 1986 No 13%-nominal rate; 14.99% – effective rate 13 BES Islands (Bonaire, Sint, Eustatius and Saba) GET – General Expenditure Tax 01.01.2011 No Bonaire – Service-6%; Goods-8%; import -8%; others-25%,7%,0% Sint, Eustatius and Saba- Service – 4; goods – 6%; import -6%; others-5%,10%, 18%,22%,30% 14 Bostwana VAT 01.07.2002 BWP 1million 12% 15 Brazil Multiple taxes 16 Bulgaria VAT 01.04.1994 BGN50000 Standard- 20% Reduced-9% 17 Canada GST HST 01.01.1991 01.04.1997 CAD 30000 GST – 5%; HST – 9.95% to

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000 Standard – 24; reduced-10% & 14% 34 France VAT 10.04.1954 None Standard – 20%; Reduced-2.1%, 5.5%,10% 35 Georgia VAT 24.12.1993 GEL100000 Standard-18%;Reduced- 0.54% 36 Germany VAT 01.01.1968 None Standard – 19%; Reduced-7% 37 Ghana VAT 18.03.1998 GHS200000 Standard – 15% 38 Greece VAT 01.01.1987 None Standard – 23%; Reduced-6%, 13% 39 Guatemala VAT 01.07.1992 No Standard-12%; Reduced -5% 40 Honduras VAT 01.01.1964 No Standard-15%;Other -18% 41 Hungary VAT 01.01.1998 No Standard-27%; Reduced-5%, 18% 42 Iceland VAT 01.01.1990 ISK1000000 Standrad-24%; Reduced-11% 43 Indonesia VAT 01.01.1984 IDR4.8 billion 10% 44 Ireland, Republic of VAT 01.11.1972 Services-EUR37500 Goods-EUR70000 Standard-23%; Reduced -9% and 13.5% 45 Isle of Man VAT 01.04.1973 GBP82000 Standard-20%; Reduced-5% 46 Israel VAT 01.07.1976 ILS100000 17% 47 Italy VAT 01.01.1973 No Standard-22%; Reduced-4%,5%,10% 48 Japan Consumption tax 01.04.1989 JPY10million 8% 49 Jersey, Channel Islands GST 06.05.2008 GBP300000 5%

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llion; Voluntary-MNT10 million 10% 68 Morocco VAT 01.01.1986 No Standard-20%; Reduced-7%,10% & 14% 69 Myanmar Commercial tax 31.03.1990 MMK20000000 Goods – 5% – 120%; Services-5% 70 Namibia VAT 27.11.2000 NAD500000 15% 71 Netherlands VAT 01.01.1969 No Standard-21%; Reduced-6% 72 New Zealand GST 01.10.1986 NZD60000 15% 73 Nicaragua VAT 06.05.2003 No 15% 74 Nigeria VAT 24.08.1993 No 5% 75 Norway VAT 01.01.1970 NOK50000 Standard-25%; Reduced-10% & 15% 76 Pakistan Sales tax 01.11.1990 PKR5million or utility bills exceed PKR800000 Goods-17%; Services-16%, 15% & 14%; Others-24%,19.5%18.5%, 18% 77 Panama VAT 22.12.1976 USD360000 Standard-7%; Other-10%, 15% 78 Papua New Guinea GST 01.01.2004 PGK250000 10% 79 Paraguay VAT 01.07.1992 No Standard-10%;Reduced-5% 80 Peru VAT 01.08.1991 No 18% 81 Philippines VAT 01.01.1988 PHP1919500 12% 82 Poland VAT 05.07.1993 PLN150000 Standard-23%; Reduced-5%,8% 83 Portugal VAT 01.01.1986 No Standard-23%; Intermediate-16% Reduced-6% 84 Pureto Rico Sa

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an Business tax 13.06.1931 No VAT-5%; Gross business receipt tax-0.1% to 25% 101 Tanzania VAT 01.07.2015 TZS100 million 18% 102 Thailand VAT 01.01.1992 THB1800000 7% 103 Trinidad and Tobago VAT 01.01.1990 TTD500000 12.5% 104 Tunisia VAT 02.06.1988 TND100000 Standard-18%; Reduced-6% and 12% 105 Turkey VAT 02.11.1984 No Standard-18%; Reduced-1% and 8% 106 Uganda VAT 01.07.1996 UGX150million 18% 107 Ukraine VAT 01.01.1992 UAH1000000 Standard-20%; Reduced-7% 108 United Kingdom VAT 01.041973 GBP82000 Standard-20%; Reduced-5% 109 United States No uniformity among states 110 Uruguay VAT 29.12.1972 No Standard-22%; Reduced-10% 111 Venezuela VAT 01.10.1993 No Standard-12%; Other-maximum16.5% 112 Vietnam VAT 01.01.1999 No Standard 10%; Reduced-5% 113 Zambia VAT July 1995 ZMW80000 16% 114 Zimbabwe VAT 01.01.2004 USD60000 15% Source: Worldwide VAT, GST, Sales Tax Guide, 2016. – Reply By Ganeshan Kalyani – The Reply = nice compilation sir. thanks.Aruba country is having lowest tax rate of 1% and 1.

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Goods and Services Tax – GST – By: – Prafful Lalwani – Dated:- 21-9-2016 Last Replied Date:- 30-12-1899 – Introduction GST will be a game changing reform for the Indian economy by creating a common Indian market and reducing the cascading effect of tax on the cost of goods and services. The Constitution Amendment Bill for Goods and Services Tax (hereinafter referred to as GST ) has been approved by the President of India post its passage in the Parliament (by Rajya Sabha on 3 August 2016 and by Lok Sabha on 8 August 2016) and has also been ratified by more than 50 percent of state legislatures. The Government of India is committed to replace all the indirect taxes levied on goods and services by the Centre and States and to implement GST by April 2017. Salient Features of the proposed Indian GST System: GST is defined as any tax on supply of goods and services other than on alcohol for human consumption. Taxes would be subsumed under this regime as per follows: Petroleum and petroleum

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invoice Date of debit in books. Earlier of date of issue of invoice or receipt of payment (if invoice issued within prescribed period) Earlier of completion of service or receipt of payment (if invoice issued within prescribed period) Date shown by recipient in his books Specific provisions made for continuous supply of services. Earliest of the following- Receipt of goods Date of payment Date of receipt of invoice Date of debit in books Procedural aspects Registration – Registration is mandatory for dealers having turnover over the specified limit. Dealers who are already registered with state VAT/sales tax authorities would be granted temporary registration number automatically under the GST regime and they have to get the permanent registration number within 6 months from the date GST becomes effective. Dealers would be allotted PAN based 15 digit alpha numeric registration number and separate registration is required for each state in which dealer is having business. Returns and t

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n identification number (CIN) will be generated against CPIN. Refund of taxes- Refund will be given in cases like export, unutilized credit, completion of assessment etc. In case of refund relating to input/input services used for export, the time limit for filing refund claim is one year from the date of export and the refund claim has to be certified by a chartered accountant. Principle of unjust enrichment is applicable in case of all refunds. GST returns and Due date of filling the returns: GST Return particulars Due Dates GSTR 1- Sales Register 10th of the next month. GSTR 2- Purchase Register 15th of the next month. GSTR 3- Monthly return form 20th of the next month. GSTR 4- Quarterly return for compounding dealers On and before 18th of the month after the quarter. GSTR 5- Periodic return by Non-Resident Taxpayer Within 18th day after end of the month. GSTR 6- Return for Input Service Distributor (ISD) 15th of the next month. GSTR 7- Return for Tax Deducted at Source 10th of the

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Goods and Services Tax – GST – By: – Ranjan Mehta – Dated:- 21-9-2016 Last Replied Date:- 26-9-2016 – The biggest change due to GST regime is the point when GST will be applicable i.e. Supply. First thing to understand before going forward to understand is that GST is a Destination based or consumption based regime of tax against the current Origin based regime. In present VAT regime the goods are first taxed in the state of manufacture and after that at every point from where the sale is initiated. However in GST the goods will be taxed in the state in which the sale transaction concludes. What is Supply ??? This definition is given under section 3 of Model GST law, which starts as Supply includes . There is no specific definition attached to the word supply, which is the very base of the whole regime. This definition has been made an inclusive one with a deliberate intention from the Lawmakers that they can include anything under this with or without deeming fiction. Now as per defi

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er by the said person or by any other person: Provided that a deposit, whether refundable or not, given in respect of the supply of goods and/or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply; The above definition signifies that any consideration be it cash or kind; be it by recipient or any other person shall constitute valid consideration. It will create a few issues which we will discuss in the final section. Word forbearance is also included here. However the same is part of current Service tax law under declared service but there was no specific provision for the same in various State VAT Laws. Business (17) 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 transaction in connection with or incidental or ancillary to (a) above; (c) any transaction in the nature of (a) above, whethe

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siness. Now there is Clause (b) to section 3(1) which applies in case of import of service transactions. Its application is as follows:- It applies to import of services With or without consideration Whether or not for Business That means import of service transactions will be treated as supplies even if they are for personal use and without consideration. Clause (c) of section 3(1) deals with cases which will be deemed supply even without consideration. These cases are enumerated in schedule I. Sec 3(2) specifies Schedule II which deals with cases in which a deeming fiction has been applied by law. Some cases are deemed supply of goods while others are deemed supply of services. Above clauses will be explained separately in next article. Principal Agent case: Sec 3(2A) specifies that any transaction of goods and/or services between agent and principal shall be deemed to be supply. This means that earlier the Agents were not liable to tax under the VAT laws if principal makes the payme

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present is to make all advances to be brought into the ambit of supply. Import of personal services : All imports of services are included in supply including personal imports. The monetary consideration is also not required. An example:- If we register at freelancer.com and it provides 1st 5 bids everymonth free of cost then such free bids are import of services without consideration. This free of cost importation of service is deemed supply under clause (b) to sec 3(1). Principal to agent transfer : Transaction of transfer of goods and/or services between agent and principal is supply now. When the Principal sends the goods to the agent the same shall be supply and Principal shall pay GST on such goods/services raising a GST invoice. This is going to change the whole business structure in big industries where Big corporates appoint distributors on agency basis and book their sale only when it is finally sold by the agent. Now the suppliers will be required to pay GST at the time of s

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 20-9-2016 Last Replied Date:- 22-9-2016 – Dear Expert,Please suggest whether job work is taxable in GST.Taxable for Principle & for Job worker, registered and unregistered supplier & job workerIf returned after job working to principal, andIf direct sale/export from the premises of Job worker.Thanks. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = In my view it will be there. However it can be ascertained on the outcome of regular Acts and Rules. – Reply By CA Surender Gupta – The Reply = As per the scheme under the present Model Draft GST law, Goods will be allowed to be send for Job Work without payment of Tax. Further, subject to conditions and permissions, goods wil

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ial to job worker and receiving it back or selling it from job worker premises is framed same as it is in current excise law. The time period of capital goods sending to job worker is also same in draft model gst law.Thanks experts to enlightening the subject. – Reply By YAGAY AND SUN – The Reply = Only one major change that if goods are not returned within prescribed time limit then interest along with Duty needs to be reversed and at the event of return of goods interest along with duty shall be taken back. – Reply By YAGAY AND SUN – The Reply = Comptroller Auditor General's Objections on CENVAT Credit CAG of India had conducted a Performance Audit on CENVAT credit scheme, to seek an assurance that provisions in the Act/rules/clarific

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re is no specific provision for charging interest on such delayed reversal. This results in loss of interest to the Government. Audit Recommends: The Government may consider inserting provision for charging interest in case of non/delayed reversal of CENVAT credit in respect of non/delayed receipt of goods sent to job worker. The Tariff Conference held on 28 and 29 October 2015 had decided that the interest is liable to be paid after the expiry of period of 180 days and there is no need for insertion of provision for charging interest. However, Audit is of the opinion that to avoid ambiguity there is a need to insert specific provision in this regard. – Reply By Ganeshan Kalyani – The Reply = Yes the good part is interest paid is also propo

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Goods and Services Tax – GST – By: – CS SANJAY MALHOTRA – Dated:- 19-9-2016 Last Replied Date:- 30-12-2016 – As Goods and Service Tax will bring in Business Transformation; it s important to understand the Transitional Provisions to ensure that the proposed tax system takes care of existing tax credits, payments and should not be a TAX COST for the assessee s in GST. Due care has to be taken in shift over from Present set of Indirect Tax system to GST Regime so that the required compliances shall be complied with and taxes paid under present taxation system should be rolled over in GST Law. Appointment of Officers under GST Act (Section 141) of Model GST Law provides that all the officers appointed under Central / State Laws relating to Taxes shall be deemed to have been appointed as GST Officers under the respective Acts. Migration of Existing Tax Payers (Section 142) All the persons registered under the present Tax structure shall be migrated automatically to GST on provisional basi

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day on which GST Act comes into force. Tax credit has to be taken as opening balance in Electronic Ledger i.e. online Input Tax Credit Ledger in GSTIN. CENVAT Credit available under Excise and Service Tax as on date preceding to GST Act date shall be carried forward in Electronic Ledger under the head CGST and Vat credit under the head SGST . Tax Credit has to be carry forward provided the same is admissible both under present and in GST law. Tax Credit shall be recovered as tax arrears by Central / State GST officers if the same is found to be recoverable as a result of any proceeding initiated before or after the GST Act comes into force. The above provisions shall be incorporated under respective CGST and SGST Acts. Unavailed CENVAT Credit on Capital Goods not carry forward in return to be allowed in GST in certain situation (Section 144) Unavailed CENVAT credit means that the tax credit on capital goods which have not been availed. For e.g. in the present Excise law, CENVAT credit

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r after the GST Act comes into force. The above provisions shall be incorporated under respective CGST and SGST Acts. Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations (Section 145) Any person who is into the sales of exempted goods under the present law is exempted from Registration and further he shall have to get himself registered under the GST Act if the products come out of exemption or is subject to levy under the GST Act. Such registered persons under the GST Act shall be eligible to claim Input Tax credit in respect of Inputs, WIP held in stock , Inputs contained in final products as on the date immediately preceding to the Date from which GST Act comes into force. Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme (Section 146) Any Registered person who is paying tax in the capacity of Composite Tax Payer at a fixed rate or fixed amount un

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hall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such switch over: Provided that after payment of such amount, the balance of input tax credit, if any lying in his electronic credit ledger shall lapse. The above provisions shall be incorporated under respective CGST and SGST Acts. Exempted Goods Returned to Place of Business in GST regime(Section 148) No Tax shall be payable by the person returning the exempted goods provided the said goods are cleared not earlier than a period of 6 months from the date of enactment of GST Act and further returned to supplier of goods within a period of 6 months from the date on which GST Act comes into force. Tax stands payable if the above stated condition is not satisfied. The above provisions shall be incorporated unde

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ed back within a period of 6 months from the date when GST comes into force OR Tax is to be paid by Job Worker if the goods after processing are returned back after a period of 6 months after the GST enactment date. If registered person shows sufficient cause, then the period of 6 months may be extended by another 2 months by the competent authority. The above provisions shall be incorporated under respective CGST and SGST Acts. Semi-finished Goods removed for job work and returned on or after the appointed day (Section 151) In case Semi-finished goods are removed for carrying out certain manufacturing processes under the provisions of present tax law for further processing, testing, repair, etc and are returned after processing within a period of 6 months from the date on which GST Act comes into force, then NO Tax shall be payable. Tax shall be payable by manufacturer if the inputs are not received back within a period of 6 months from the date when GST comes into force OR Tax is to

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after the GST enactment date. If registered person shows sufficient cause, then the period of 6 months may be extended by another 2 months by the competent authority. The above provisions shall be incorporated under respective CGST and SGST Acts. Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract (Section 153) In case the price of goods are revised upwards after their clearance from the supplier premises, the taxable person issuing the goods has to issue supplementary Invoice or Debit Note containing such particulars as may be prescribed under the GST Rules within a period of THIRTY DAYS of such price revision. In case the price of goods are revised downwards after their clearance from the supplier premises, the taxable person issuing the goods has to issue supplementary Invoice or Credit Note containing such particulars as may be prescribed under the GST Rules within a period of THIRTY DAYS of such price revision Such Debit Note /

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provisions shall be incorporated under respective CGST and SGST Acts. Claim of CENVAT Credit to be disposed of under earlier Law (Section 155) Claim for CENVAT Credit on account of any appeal, revision, review or reference shall be disposed off in accordance with the provisions of earlier law and any amount stands accrue to the person shall be paid in Cash. In similar way, any amount stands recoverable on account of any appeal, revision; review or reference shall be recoverable as Tax arrears and shall not be admissible as input tax credit under this Act. The above provisions shall be incorporated under respective CGST and SGST Acts. Finalisation of proceedings relating to Output Tax Liability (Section 156) Every proceeding initiated under any appeal, revision, review or reference shall be disposed off in accordance with the provisions of earlier law and any amount stands accrue to the person shall be paid in Cash and ANY amount stands recoverable on account of any appeal, revision; re

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of Returns (Section 158) Where any duty / interest / penalty or any other amount stands recoverable due to Revision in Return furnished under earlier law, the same shall be recovered as Tax arrears and amount shall not be admissible as input tax credit under this Act. Where any duty / interest / penalty or any other amount becomes Refundable due to Revision in Return furnished under earlier law, the same shall be refunded to him in Cash or as per the provisions of earlier act. The above provisions shall be incorporated under respective CGST and SGST Acts. Treatment of long term construction / works contracts (Section 159) Tax is applicable at the rates specified under GST Act in respect of Supply of Goods and services provided after the enactment of GST Act even if the agreement / contract is executed prior to introduction of GST Act. The above provisions shall be incorporated under respective CGST and SGST Acts. Progressive or periodic supply of goods or services (Section 160) No Tax

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lace subject to the following conditions:- (i) the agent is a registered taxable person under this Act; (ii) both the principal and the agent declare the details of stock of goods lying with such agent on the date immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf; (iii) the invoices for such goods had been issued not earlier than twelve months immediately preceding the appointed day; and (iv) the principal has either reversed or not availed of the input tax credit in respect of such goods. Tax paid on Capital Goods lying with Agents to be allowed as Credit under SGST Law (Section 162B) This provision shall be incorporated only under respective SGST Acts. Input Tax credit is admissible to the Agent in respect of CAPITAL goods lying at his place subject to the following conditions:- (i) the agent is a registered taxable person under this Act; (ii) both the principal and the agent declare the details of stock of capita

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Goods and Services Tax – All the remaining provision of The Constitution (One Hundred and First Amendment) Act, 2016 comes into effect w.e.f. 16-9-2016 – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – CA Venkata prasad Pasupuleti – Dated:- 17-9-2016 – GST is intend to cover larger number of people under its net and further keeping threshold exemption limit of 10Lakhs many people would come under GST net. Small tax payers may not have sufficient infrastructure, knowledge, awareness etc., in complying with various provisions of law including accounting, IT/ERP availability, and huge paper work. Because of this, every tax law provides alternative simplified scheme for the small tax payers, which is rough & ready method. GST law has no exception to this and Section 8 of Draft GST law deals with the same. Brief understanding of the scheme is as follows: Scheme is based on recommendations of the GST Council Scheme is subject to prescribed conditions and restrictions (to be prescribed) The proper officer of CGST/SGST shall permit the tax payer to pay/assessee under this scheme instead of paying at full rate. In existing many VAT laws or service tax

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GST rate. However this would be clear only when SGST law is out or any clarification in this regard. Tax rate shall be applied on turnover. Section simply refers turnover and not to the taxable turnover because of this, GST may have to be paid under this scheme even on non-taxable supplies. This lapse may be unintended and can expect replacement with taxable turnover . Sometimes it may happen that total turnover is ₹ 40Lakhs, out of which majority turnover is exports or exempted but there will be some local sales like old furniture or scrap sales etc., which may come around ₹ 1 lakh then GST payable thereon is coming around 40,000/- (assuming 1% rate) thereby making effective tax as 40%, which would be more than expected regular rate of GST. Permission to assess under this scheme is not eligible for the persons effecting any inter-state supplies of goods/services. Section says effects inter-state supply which implies that both output & input should be within one state t

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is is too harsh & heavy. For instance, person availed this scheme on notion that there would not be any interstate supplies (both procurements & output) but during later part of the year such inter-state supplies are made for whatever reasons it may be (like urgent business need or customer specification to use particular state raw materials etc.,) then the implications are heavy as he has to pay GST on all his supplies at full rate of GST along with 100% penalty apart from obvious interest liability. Further this differential tax may have to be paid from his own pocket as might have missed to collect from his customers (because he is under this scheme at that time). Such penalty shall be levied only after affording a reasonable opportunity of being heard to the taxable person being penalized. In addition to the above, liability under reverse charge may exist. This is because, scheme overrides all provisions of law except reverse charge that is levied u/s. 7(3) of GST law. Tax

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Goods and Services Tax – GST – By: – CS SANJAY MALHOTRA – Dated:- 17-9-2016 Last Replied Date:- 17-9-2016 – Goods and Service Tax – Export of Goods GST is not the change in Tax Structure but would result in Business Transformation. One would definitely witness the Growth in Exports with the introduction of GST. Taxes and Duties are never exported and have to be neutralised to the Exporter by way of refund or drawback so that the same may not add to the cost of goods and exports remain competitive in the International market. Exports can be Direct Exports, Deemed Exports or Third Party Exports. Direct Exports refer to exports where the goods supplied are exported to any country outside India and the payment is received either in Free Foreign Exchange or in Indian Rupees through Vostro account. Deemed Exports refer to exports where the goods supplied do not leave India and the payment is received either in Free Foreign Exchange or in Indian Rupees. Third Party Exports are exports made b

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Refund Section 38(1) of Model GST Law 2016 provides that the exporter claiming refund has to file application for claiming refund with TWO YEARS from the Relevant Date (defined at the end of article) Refund under GST In the present Central Excise Act, exporter of goods procure Duty Free material against CT-1, CT-3, Concessional Duty Certificates and export the goods without payment of duty under Bond. In GST Regime, all forms i.e. CT-1, CT-3 shall be done away with and the goods have to be purchased on payment of GST which is available for refund. No refund shall be admissible if the amount is less than ₹ 1000/- Mentioned below are the options available under GST with the exporter for availing Refund in respect of Export of Goods: Refund of GST paid on Input & Input Services is available under GST OR alternatively Rebate of GST is available on finished goods. (This provision is similar to the existing provision under Present Central Excise, Service Tax & VAT Act. At prese

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del GST law provides for Refund of unutilised accumulated on account of Exports, except on goods which are subject to Export Duty. Rule 38(4)(a) provides for refund of 80% to taxable person within the time specified and terms and conditions to be defined in GST Rules to be framed and balance 20% to be released after due verification of all the export documents. In any case the refund has to be processed within a maximum period of 90 days. Refund on Export of Goods / Services is available to the Exporter in respect of Tax paid on Inputs, services used in the supply of goods for Export. (Section 38(6)(a) of Model GST Law) Deemed Exports – Refund of GST In the present environment, the supplies to EOU / Projects under International Competitive Bidding / Mega Power Plants / World Bank funded Projects are exempted against Concessional Duty Certificates, which does not exist in the GST- Model Draft Law. GST is to be paid on supplies to above stated sectors and option is available with both i.

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case of Movement by Road / Bank Realisation Certificate. Invoice wise sales data is to be uploaded online at the time of submission of Return for Outward supplies; GSTIN may establish linkage between ICEGATE, DGFT and GST returns to ensure sanction of valid export claims. E-BRC module for payment realisation in case of export of material as exists in the DGFT system can be verified online by GST officer for processing of claim. The same would reduce the transaction cost of Exporters and adds to Ease of Doing Business. Relevant Date is defined under Model GST Law as: in the case of goods exported out of India where a refund of tax paid is available in respect of the goods themselves or, as the case may be, the inputs or input services used in such goods, – (i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India, or (ii) if the goods are exported by land, the date on which such goods pass the frontier, or (iii)

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f the invoice; (e) in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of Appellate Authority, Appellate Tribunal or any Court, the date of communication of such judgment, decree, order or direction; (f) in the case of refund of unutilized input tax credit under sub-section (2), the end of the financial year in which such claim for refund arises; and (g) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustment of tax after the final assessment thereof. The basic principle lying behind GST is to do away with the exemptions so that the Tax Base shall be widened thus resulting in Reduction in GST Rates. Section 38 of Model GST law provides for Refund of unutilised accumulated on account of Exports, except on goods which are subject to Export Duty. Rule 38(4)(a) provides for refund of 80% to taxable person within the time specified and terms and conditions to be defined in GST Rules to be f

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Service Tax – D.O. No. 137/Chairman(CBEC)/2016 – Dated:- 17-9-2016 – Letter D.O. No. 137/Chairman(CBEC)/2016 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs New Delhi, dated 17-9-2016 The journey to rollout the Goods and Services Tax (GST) has commenced with the enactment of the 101st Constitution Amendment Act, 2016 on 8th September, 2016 and the subsequent notifications. The Government is committed and has set in motion a slew of steps to ensure that the GST comes into force from 1st of April, 2017. In this backdrop, the role of CBEC is of utmost significance and importance. 2. As you are aware, CBEC has been closely associated in the drafting of the model GST law, rules and proc

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akeholders, acquiring and imparting necessary IT skills. 4. Given the tectonic and positive changes taking place in the country, I am dismayed to learn about concerns being expressed in some quarters, about the future of the service. We are at the cusp of the most historic change in the indirect tax structure and should welcome this exciting opportunity. 5. As a central service, CBEC will continue to collect CGST and IGST. There will be a growth not only in revenue but also in the tax base. We are in the process of en-cardering 50 per cent of all the posts in the GST Council Secretariat for CBEC. Petroleum and Tobacco products, which account for substantial revenue, shall for the present continue to be subject to central excise du

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Goods and Services Tax – Constitutes the Goods and Services Tax Council – Notification – TMI Updates – Highlights

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Goods and Services Tax – F. No. 31011/07/2014-SO (ST) – S.O. 2986(E) – Dated:- 16-9-2016 – MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 16th September, 2016 S.O. 2986(E).-In exercise of the powers conferred by sub-section (2) of section 1 of the Constitution (One Hundred and First Amendment) Act, 2016, the Central Government hereby appoints the 16th day of September, 2016 as the date on which the provisions of Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16

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Goods and Services Tax – GST – Dated:- 15-9-2016 – The Prime Minister held a meeting to review the preparedness for rollout for GST on 14th September, 2016. The meeting was attended by Union Finance Minister, both the Ministers of State for Finance, senior officers from the Prime Ministers office and Finance Ministry. In order to ensure that there is no slippage on date of implementation of GST from 1st April, 2017, the Prime Minister reviewed the progress made on various steps needed for the r

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Goods and Services Tax – Started By: – Velayutham Panchatcharam – Dated:- 15-9-2016 Last Replied Date:- 18-9-2016 – I am working in SEZ. As per present draft GST, will SEZ Developer go for refund because developer does not have export. Please clarify. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = No GST provisions are there at present. It will be subject to the process to be undertaken by GST Council. As such you have to wait til such time. – Reply By YAGAY AND SUN – The Reply = Press Releases CONCERNS OF THE EXPORTS SECTOR IN THE GST REGIME: FIEO FIEO/PUB/PR /29/16 August 30, 2016 CONCERNS OF THE EXPORTS SECTOR IN THE GST REGIME – PUT FORWARD BY FIEO IN THE MEETING OF EMPOWERED COMMITTEE OF STATE FINANCE MINISTERS ON GST Legislative Cha

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– Reply By CS SANJAY MALHOTRA – The Reply = We have taken up on various issues relating to SEZ, EOU's & Export / Import Licences with Ministry of Commerce and Ministry of Finance. Even Ministry of Commerce too have taken up with MOF for redressal of exporters concerns in GST. Have shared the impact of GST on above sectors in my article titled Impact of GST on Exports / Imports. There are lot of queries like rate of duty on clearances from SEZ / EOU in domestic and transitional arrangement for said units,etc……..Wait for sometime, things will be put across in GST COuncil meeting scheduled for Sep 22, 2016 – Reply By Ganeshan Kalyani – The Reply = Sir, thanks for the updated news. Thanks. – Reply By YAGAY AND SUN – The Reply = Tra

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Goods and Services Tax – F. No. 31011/09/2015-SO (ST) – S.O. 2957(E) – Dated:- 15-9-2016 – MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 15th September, 2016 S.O. 2957(E).-The following Order made by the President is published for general information:- ORDER In exercise of the powers conferred by article 279A of the Constitution, the President hereby constitutes the Goods and Services Tax Council consisting of the following members, namely:- a) The Union Finance Minist

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Goods and Services Tax – GST – By: – Venkata prasad Pasupuleti – Dated:- 14-9-2016 Last Replied Date:- 15-9-2016 – Meaning & Scope of Supply under GST CA Venkata Prasad GST is said to be levied on supply in legal words taxable event is supply thereby dispensing with the existing different taxable events for different levies of duties/taxes like Manufacture for levy of excise duty, sale for levy of VAT/sales tax etc., Therefore understanding of the expression supply is highly important. The Section 3 of draft GST law exclusively deals with the meaning & scope of supply . In this article, an attempt has been made to decode the said section and understand its coverage. The said section is defined in various parts covering different scenarios and also comprising of two schedules. The most criticized & problematic part is definition is only inclusive and does not have means part i.e. what is actually means. This is one of deviation from the accepted international GST/VAT laws.

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ideration are deemed as supply. The concept of one person to another (two persons) is no more relevant now. The main effect is that transactions between two units of same company may liable to tax. The same should be in the course or furtherance of business. Business is widely defined u/s. 2(17) (here again only inclusive manner). In the course of business implies a period of time during which business is in progress and also the connected relation with it. Furtherance of business can be commonly understood as helping, forwarding, promoting, advancement, or progress etc., of business Quoted: (b) importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and Unquoted: Services imported are liable for IGST. Section 2(52) of draft law specifies the conditions to construe import of service . One of condition laid down in the aforesaid section [i.e. clause (d)] is that supplier and receiver shall not be merely establishment of dis

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nts/reimbursements made to foreign branch. Same was view further elaborated in case of Tech Mahindra Ltd. v CCE 2016 (9) TMI 191 – CESTAT MUMBAI ). Consideration is not mandatory to attract GST i.e. free services received from outside India liable. The main effect can be seen in case of free transactions between foreign parent and Indian subsidiary company or vice versa. In the course or furtherance of business also not mandatory thereby personal services were also liable however it was provided in the law that there would be threshold limit exempting the services imported for personal use. Quoted: (c) a supply specified in Schedule I, made or agreed to be made without a consideration. Unquoted: In terms of clause (a) of Section 3(1) when there is no consideration then there is no supply. However this is general provision. The above clause i.e. (c) deems that transactions specified in schedule I as supply even though there is no consideration. Therefore specified transactions are liabl

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should in the course or furtherance of business. If this condition fails then same is not supply since transaction does not fall under clause (c) for the reason that there is consideration and simultaneously does not fall under clause (a) for the reason that it is not in the course or furtherance of business. Application of business assets to private/non-business use is deemed as supply in schedule I similar services for private/non business use. The tracing out these transactions has many practical challenges and may lead to litigation. There was widespread belief that stock transfers are liable for GST in terms of clause (5) of schedule I, which says supply by a taxable person to another taxable/non-taxable person and the expression taxable person can be understood from section 9 r/w schedule III deals with registration (state wise or business vertical wise). Here the question arises whether registration aspect can itself suffice to deem two units of same person as different persons

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upply of goods or supply of services etc., Quoted: (2A) Where a person acting as an agent who, for an agreed commission or brokerage, either supplies or receives any goods and/or services on behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply. Unquoted: This subsection deems transaction between principal and agent as supply. This deeming fiction only for the transactions between principal and his agent and not in case of transactions with the third person. And the taxability of transactions between agent (acting on behalf of his principal) and third person will continue to be supply by third person to the principal and not to the agent. All legal consequences/rights/liabilities under GST like availing input tax credit, adding mismatched credit to recipient liability, reverse charge liability etc., Further this deeming fiction is to tax the movement of goods/services between principal and agent and not for commission or brokerage that

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ress provision to exclude actual service provider from the GST compliance is recommended and similarly 'turnover' made under the model of 'aggregator' shall be excluded from 'turnover' limits specified for registration, other areas. Further what is deems is supply of branded service which was defined u/s. 43B to mean that electronic commerce operator (E-commerce operator). There seems to be lack of synchronization here since tax compliance for aggregator and E-commerce operator is quite different. Be that as it may, E-Commerce Operator is defined u/s. 43B in such a manner that it would even cover an aggregator. Issue that may be of concern for an aggregator would be if they are also governed by the provision of collecting tax at source even when full GST is to be discharged by them on the same supplies. If yes, then in this situation also there is going to be a double taxation on the single transaction and credit accumulation in the hands of service providers. M

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Goods and Services Tax – GST – By: – Anuj Bansal – Dated:- 14-9-2016 Last Replied Date:- 15-9-2016 – As we are all aware that constitutional amendment for implementing GST Law has got nod in Rajya Sabha. Now we are looking forward to welcome GST Law to have brighter India with one law subsuming number of indirect tax laws like Entry Tax, Octroi, etc. The whole India is cherished and welcoming the GST Law by making different – different interpretations. But at the back of the mind, industry is worried about the applicability of law, transition process and compliances under GST Law. In this note I am discussing the first step to enter into the GST Law i.e. the registration process. The scope of the note is limited to transition provision of registration for the dealers who are presently registered in various states under VAT, Excise or Service Tax laws. The Govt. has ensured that they will migrate the existing registrations, whether under the State Laws or Central Laws, to GST Law. But

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other words, for smooth sailing of business present VAT registration would be converted to GSTIN (Registration Number under GST) and the circumstances where the VAT registration is not there with the tax payer, the existing Service Tax Number would be converted to GSTIN. However, initially a provisional registration will be issued and remaining information would be required to be filed within 6 months. VAT Registrations will be converted to GSTIN Process for migrating the VAT TIN numbers to GSTIN will be as follows: The dealers who are presently registered under VAT law and having TIN numbers, GSTIN will be generated after validating PAN from Income-tax Department. Such GSTIN will be sent by GSTN (GSTN is a company providing IT infrastructure) to respective state authorities. The state authorities will communicate GSTIN and password to the tax payers. Instructions will also be issued to the dealers to fill the remaining details as may be required. The above process will not in any way

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C) to GSTIN will be as follows: The department would be having email of the dealer. Department will advise the tax payers on email to intimate about the states where the assessee wants to get GSTIN. Once the details are received from the dealer about the states where dealer want to have GSTIN. Thereafter, the Service Tax portal will check with GSTN whether GSTIN is already generated or not generated by the dealer, in the states mentioned by the tax payers. In case GSTIN is not generated, GSTN will generate GSTIN for each of the state for that tax payer and will communicate to the tax payer and Service Tax Department. The tax payer will also be required to fill other data within six months and if the date is not filled in the specified time period, the GSTIN will be cancelled. It is stated that the government is trying to make a smooth conversion from VAT regime to GST Regime. The take of the note for the industry is that all VAT registration numbers should have updated PAN, Email and M

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-9-2016 Last Replied Date:- 15-9-2016 – GST TERMINOLOGY – PART I Model GST Law, as placed in public domain on 15th June, 2016 by the Empowered Committee of State Finance Ministers (EC) contains the draft of model GST law which provides a basis for CGST / SGST / IGST legislations to the enacted in near future. Like in any other statute or tax law, model law on GST also contains exhaustive terminology or interpretations for understanding and interpretation of the law. Section 2 of Goods and Services Tax Act contains definitions of various terms, expressions and phrases which ought to be understood for the purpose of interpretation of tax law. It contains meanings of 109 such terms in 109 clauses in Section 2. An attempt is being made in a series of articles to dissect or interpret the GST terminology so as to enable desired understanding of tax provisions. To begin with, let's discuss the following terms in relation

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ould have issued such tax invoice for delivery of goods or services in question. Literally, address means the particulars of the place where someone lives or an organization is situated. What is an 'invoice' is defined in section 2(60) read with section 23 to mean a document showing the description, quantity and value of goods or services, tax charged thereon and other prescribed particulars. 'Taxable person' is defined in section 2(96) read with section 9 to mean a person who carries on any business in India or any State and who is registered or required to be registered under Schedule III. Further, an agriculturist has not been considered as a taxable person. 'Person' is defined in section 2(74) of the GST law. Address on Record [Section 2(3)] 'Address on record' means the address of the recipient as available in the records of the supplier. Address on Record was not defined earlier in the Finance Act, 1994. This definition is a newly inserted definiti

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#39;place of business' which has been separately defined in clause 75 of section 2. Fixed establishment is – Place other than place of business It is characterized by a sufficient degree of – Permanence, and Suitable structure It should be meant to supply services or to receive and use services for its own needs. Such permanence should be have sufficient degree of permanence. What is sufficient is subjective and would depend upon facts and circumstances of each case. Examples of permanence may be property as lease or rent or own property. Suitable structure has been referred to in the form of human and technical resources. Fixed establishment has been referred to only for the purpose of supply of or receiving of services, not for goods. Temporary presence of staff by way of a short visit at a place cannot be called a fixed establishment. Also, the number of staff at a location is not important. What is relevant is the adequacy of the arrangement (of human and technical resources),

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ch registration has been obtained, the location of such place of business; where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and in absence of such places, the location of the usual place of residence of the recipient; According to Rule 2(i) of Place of Provision Rules, 2012, 'location of the service receiver' means: where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained; where the recipient of service is not covered under sub-clause (a): the location of his business establishment; or where services are used at a place other

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usiness. Location of supplier of service [Section 2(65)] 'Location of supplier of service' means: where a supply is made from a place of business for which registration has been obtained, the location of such place of business ; where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and in absence of such places, the location of the usual place of residence of the supplier; According to present Rule 2(h) of Place of Provision of Rules, 2012 'location of the service provider' means- where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been

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'Place of business' includes- a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or a place where a taxable person maintains his books of account; or a place where a taxable person is engaged in business through an agent, by whatever name called; The place of business would accordingly include the following places – place from where business is ordinarily carried on, warehouse, godown, any other place used for storing goods or place to provide or receive goods or services by taxable person, place where books of accounts are maintained by taxable person (it may be place of business of agency or any professional), place from where a taxable person is engaged in business through agent by whatever name called.(like commission agent, C&F agent, consignment agent etc) The definition given is an inclusive definition and not a comprehens

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goods Input tax credit availed Output tax payable and paid Such other particulars as prescribed Section 42 also provides that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned. Usual place of residence [Section 2(105)] 'Usual place of residence' means: in case of an individual, the place where he ordinarily resides. in other cases, the place where the person, as defined in sub-section (74), is incorporated or otherwise legally constituted. Usual place of residence has been specified for both, individuals as well as non-individuals as follows – Taxable person What is usual place of residence Individuals Place where an individual ordinarily resides Other cases (Any person other than individual) Place where much person is incorporated or otherwise legally constituted Section 2(74) defines who is a 'person' which includes company, firm, HU

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 13-9-2016 Last Replied Date:- 14-9-2016 – Dear Professional Colleague, Government notifies September 12, 2016 as the appointed date for GST Council Provisions The Central Government vide Notification S.O. 2915(E).- [F. No. 31011/09/2015-SO (ST)] dated September 10, 2016, has appointed 12th day of September, 2016 as the date on which the provisions of Section 12 of the Constitution (101st Amendment) Act, 2016 ( the Constitutional Amendment Act ) shall come into force. In terms of Section 12 of the Constitutional Amendment Act (i.e. insertion of new Article 279A), the President shall within 60 days, from date of commencement of the Constitutional Amendment Act, by order, constitute a

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on the following: The taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in GST; The goods and services that may be subjected to, or exempted from GST; Model GST Laws, principles of levy, apportionment of GST levied on supplies in the course of inter-State trade or commerce under Article 269A and the principles that govern the place of supply; The threshold limit of turnover below which goods and services may be exempted from GST; The rates including floor rates with bands of GST; Any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; Special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmi

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he total votes cast, in that meeting. Now, following legislations-Central GST (CGST) and Integrated GST (IGST) will have to be passed by Parliament and a State GST (SGST) legislation by each of the State Legislatures. The States and the Centre are working overtime and talking to stakeholders to draft the CGST, SGST and IGST laws, which are to be passed in the Winter Session of Parliament in November this year. Video Presentations on GST Highlights of Draft GST Law, 2016: https://www.youtube.com/watch?v=7ByfCXugAk0 • Presentation on Draft GST Law – Levy, Taxable Event: Supply, Taxable Person, Composition Scheme: https://www.youtube.com/watch?v=XrWHZMZf8GQ GST impact & preparedness for Service sector: https://www.youtube.com/watch?v=

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 13-9-2016 Last Replied Date:- 14-9-2016 – The long awaited amendment of Constitution for the purpose of goods and services tax has got the assent of the President on 08.09.2016 and also published in the Official Gazette. It is called as the Constitution (One Hundred and First Amendment) Act,2016 ( Act for short). Effective date The Act has not come into effect immediately on the date of publication in the Official Gazette. Section 1(2) of the Act provides that the Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Special provisions with respect to goods and services tax Section 2 of the Act inserts a new Article 246A. The newly inserte

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cle 248 (1) – Subject to Article 246A, Parliament has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List. Article 248 (2) – Such power shall include the power of making any imposing a tax not mentioned in either of those Lists. Amendment to Article 249 Article 249 deals with the power of Parliament to legislate with respect to a matter in the State List in the national interest. Section 4 of the Act proposes amendment in Article 249. After amendment Article 249(1) reads as follows- Article 249 (1) – Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to goods and services tax provided under Article 246A or any matter enumerated in the State List specified in the resolution, it shall b

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endment Article 268 reads as follows- Article 268 (1) Such stamp duties as are mentioned in the Union List shall be levied by the Government of India but shall be collected- In the case where such duties are leviable within any 226 (Union territory) in other cases, by the States within which such duties are respectively leviable. 268 (2) – The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State. Omission of Article 268A Article 268A deals with service tax levied by Union and collected and appropriated by the Union and States. Section 7 of the Act proposes to omit this Article 268A. Amendment to Article 269 Article 269 deals with taxes levied and collected by the Union but assigned to the States. Section 8 of the Act proposes amendment to Article 269. The amended Article 269 (1) reads as follows- Article 269 (1) – Taxes on the sale or purchase of goods and taxes on the consig

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be supply of goods, or of services, or both in the course of inter-State trade or commerce. Article 269A(2) provides that the amount apportioned under clause (1) shall not form part of the Consolidated Fund of India. Article 269A(3) provides that where an amount collected as tax levied has been used for payment of the tax levied by a State under Article 246A, such amount shall not form part of the Consolidated Fund of India. Article 269A (4) provides that where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. Article 269A(5) provides that the Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes places in the course of inter-State trade or commerce. Amendment to Article 270 Article 270 deals with distribution of revenues between the Union and States.

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nion under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2). Amendment to Article 271 Article 271 deals with surcharge on certain duties and taxes for the purpose of the Union. Section 11 of the Act proposes amendment in Article 271. After amendment Article 271 reads as follows- Article 271 – Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles, except the goods and services tax under Article 246A, by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. Goods and Services Tax Council Section 12 of the Act proposes to insert a new Article 279A after Article 279 which deals with Goods and Service Tax Council. Constitution of GST council Article 279A (1) provides that the President shall, within 60 days from the date of the commencement of the Act

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plies in the course of inter-State trade or commerce under Article 269A and the principles that govern the place of supply; the threshold limit of turnover below which goods and services may be exempted from the goods and services tax; the rates including floor rates with bands of goods and services tax; special provisions with respect to the States of Arunachal Pradesh, Assam, J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and any other matter relating to the goods and services tax, as the Council may decide. Article 279A (5) provides that the Council shall recommend the date on which the GST be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. While discharging the functions, the Council shall be guided by the need for a harmonized structure of GST and for the development of a harmonized market for goods and services. The Council shall determine the procedure in the performance of its

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more States; or between the Government of India and any State or States on one side and one or more other States on the other side; or between two or more States arising out the recommendations of the Council or implementation thereof. Amendment of Article 286 Article 286 deals with the restrictions as to imposition of tax on the sale of purchase of the goods. Section 13 of the Act proposes amendments in Article 286. After amendment Article 286 reads as follows: Article 286 (1) – No law of a State shall impose, or authorize the imposition of, a tax on the supply of goods or of services or both, where such supply takes place- outside the State; or in the course of the import of the into, or export of the goods out of, the territory of India. Article 286 (2) – Parliament may by law formulate principles for determining when a supply of goods or services or both takes place in any of the ways mentioned in clause (1). Amendment of Article 366 Article 366 gives definition for some words. Se

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of sixth schedule Sixth schedule deals with the provisions as to the administration of Tribal areas in the States of Assam, Meghalaya, Tripura and Mizoram. Para 8 of the schedule schedule deals with deals with the powers of the Regional Councils to assess and collect land revenue and impose taxes. Section 16 of the Act proposes to insert clause (e) after clause (3) (d) . After this para 8(3) reads as follows- (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say – (a) taxes on professions, trades, callings and employments; (b) taxes on animals, vehicles and boats; c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; (d) taxes for the maintenance of schools, dispensaries or roads.; and (e) taxes on entertainment and amusements. Amendment of seventh schedule Seventh Schedule deals with the three types of List viz., U

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ntry 62 in the State List- 62. Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council. The section proposes to delete the following entries- Entry No. 52 – Taxes on the entry of goods into a local area for consumption, use or sale therein. Entry No. 55 – Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television. Compensation to States for loss Section 18 of the Act provides that Parliament shall, by law, on the recommendations of the GST Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and service tax for a period of five years. Transitional provisions Section 19 of the Act provides that notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State immediately before the commencement

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Goods and Services Tax – GST – By: – parth sharma – Dated:- 13-9-2016 – Definition of Goods in Model GST law is seeing various complications which needs clarification. Comparison of definition of goods with previous laws is as under:- Model GST Law (48) goods means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply; Explanation- For the purpose of this clause, the term moveable property shall not include any intangible property. Section 2(48) Finance Act 1994. goods means every kind of movable property other than actionable claim and money; and includ

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forming part of the land which is agreed to be severed before sale or under the contract of sale; Discussion 1.-Scrap The definition was originally borrowed from Sales of Goods Act,1932. Though the definition speaks that all movable property is goods but it has been held by judiciary that Goods should have a commercial aspect of capable of being purchased and sold and served as a result of such sale. Goods in order to be called as goods should satisfy the test of marketability i.e. they should be something which can be ordinarily come to the market to be bought and sold. It must be something which is known to the customers and the commercial community. In CEA, there arose a dispute regarding taxability of scrap calling it non marketable an

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lity of uncanned software and said that it may be goods. However, even uncanned software is intangible property (goods) and transfer of right to use will be chargeable to VAT. In service tax law, temporary transfer of IPR will be liable to service tax. Non exclusive licensing will be liable to service tax. Development of software (uncanned software) will be chargeable to service tax vide sec 66E(d). Conclusion is that in case of software which are developed and put on a media disk, both Vat and service tax is being charged which led to double taxation. To end this double taxation, a explanation is added to make intangibles as service and would be taxed as service. Discussion 3.-Electricity Electricity is an intangible good. A separate entry

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