Goods and Services Tax

Composition Scheme
Query (Issue) Started By: – Siddharaj Deora Dated:- 2-5-2017 Last Reply Date:- 27-7-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Are works contract covered under composition scheme? If not, whether any abatement is provided as in Service Tax? And what rate will apply for supply of goods and supply of services?
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Section 10(2) of CGST Act provides that the registered person shall be eligible to opt under composition scheme, if-
(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of para 6 of Schedule II;
(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
(c) he is not e

= = = = = = = =

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

= = = = = = = =

Area Based Exemption
Query (Issue) Started By: – CA AJAY KUMAR AGRAWAL Dated:- 2-5-2017 Last Reply Date:- 17-6-2017 Goods and Services Tax – GST
Got 9 Replies
GST
Dear all, By the time learned members must have an idea of shape of GST in area based exemption states like HP & UK. Please share your valuable views or share link of relevant articles.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
It is learnt that the same may likely to be continued in GST regime.
Reply By CA AJAY KUMAR AGRAWAL:
The Reply:
Thank you sir very much. My query was specifically regarding whether they have to avail ITC on the transition date & then pay GST or whether they will be eligible to avail ITC after completion of Exemption period & have to pay G

= = = = = = = =

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

= = = = = = = =

TYPES OF ‘SUPPLY’ UNDER ‘GST’ REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 2-5-2017

Section 66B of the Finance Act, 1994 provides that there shall be levied a tax at the rate of fourteen per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. The central excise duty is leviable on the manufacturing of goods. GST, being subsumed service tax and central excise duty, levies tax on the concept of supply. The key word that is to be remembered by the stakeholders is 'supply'. In this article the meaning of the term 'supply' and the types of various supplies are discussed for the information of the readers.
Supply
Section 7 of the Act defines the term 'supply' including-
* all forms of supply of goods or services or both such as sale, transfer, barter, exchange

= = = = = = = =

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

= = = = = = = =

nuous supply of goods' as a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under the contract whether or not by means of a wire, cable, pipeline or other conduit, and for which the suppler invoices the recipient on a regular or periodic basis and includes supply of such goods as Government may, subject to such conditions as it may, by notification, specify.
Section 2(33) defines the expression 'continuous supply of services' as a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract for a period exceeding three months with periodic payment obligation and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.
Inward supply
Section 2(67) defines the expression 'inward supply' in relation to a person, as receipt of goods or services or both whether by purchase, acquisition or any other means with or without co

= = = = = = = =

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

= = = = = = = =

al supply
Section 2(90) defines the expression 'principal supply' as the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.
Inter-State supply
Section 7 of Integrated Goods and Services Tax Act, defines the expression 'inter-State Supply' as supply of goods, where the location of the supplier and place of supply are in-
* two different States;
* two different Union territories; or
* a State and a Union territory
shall be treated as a supply of goods in the course of inter-State trade or commerce.
Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
Where the location of the supplier and the place of supply are in-
* two different States;
* two different Union territories; or
* a State and a Union territory
sha

= = = = = = = =

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

= = = = = = = =

oods to or by a Special Economic Zone developer or a Special Economic Zone Unit;
* goods imported into the territory of India till they cross the customs frontiers of India; or
* supplies made to a tourist referred to in Section 15.
The supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply. The intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit.
Explanation 1. -for the purposes of this Act, where a person has-
* an establishment in India and any other establishment outside India;
* an establishment in a State or Union territory and any other establishment outside that State; or
* an establishment in a State or Union territory and any other establishment being a business vertical registered with that State or Union territory,
then such establishments shall be treat

= = = = = = = =

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

= = = = = = = =

For kind attention of Honourable Prime Minister and Finance Minister. Meaning of services – there seems serious and fatal flaw in definition clause in GST laws
By: – DEVKUMAR KOTHARI
Goods and Services Tax – GST
Dated:- 2-5-2017

Relevant laws:
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017. In short CGST
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017. In short IGST
THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017. In short UTGST
THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017. In short GST Compensation.
Common definition or meaning of “services”:
Definitions or meaning provided in the CGST are adopted in IGST and UTGST, unless specific definition is provided in them. We find that meaning of “services” is provided in CGST and not in IGST, UTGST and GST Compensation. Therefore meaning of services as per CGST is applicable in IGST, UTGST, and GST Compensation.
We also find that few specific services have been defined in CGST, IGST and UTGST.
Rele

= = = = = = = =

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

= = = = = = = =

ords and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, shall have the same meaning as assigned to them in those Acts.
Analysis of meaning of Services as per S.2 (102) of CGST:
“services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
Analysis:
Although the definition clause starts with standard sentence 'unless the context otherwise requires' , however in relation to services we find that:
* A meaning has been given by use of expression “services” means
* Service means anything- this connotes that it should be thing. A service is generally
not a thi

= = = = = = = =

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

= = = = = = = =

ct in the meaning can be cured by proper amendment only and not by way of general or special order for removal of difficulties as provided in S.172, which is reproduced below:
Removal of difficulties.
172. (1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:
Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Hope and expectation:
Author hopes that he is correct and is not unaware or unconscious of any hidden aspect of meaning of services a

= = = = = = = =

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

= = = = = = = =

GST bill tabled in U'khand Assembly
GST
Dated:- 1-5-2017

Dehradun, May 1 (PTI) The Goods and Services Tax (GST) bill was tabled in Uttarakhand Assembly today during a special two-day session of the House convened for the purpose of passing the proposed legislation.
Introducing the bill in the Assembly, state Finance Minister Prakash Pant said its passage by the House was necessary in view of a uniform tax regime coming into force across the country from July 1.
As per the recomme

= = = = = = = =

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

= = = = = = = =

FAQ on GST Registration
By: – Ashwarya Agarwal
Goods and Services Tax – GST
Dated:- 29-4-2017

Q1. What will be the effective date of registration in GST?
Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.
Q2. Whether a person can apply for registration even if turnover is less than threshold exemption limit?
Ans. Yes, it will be a case of Voluntary Registr

= = = = = = = =

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

= = = = = = = =

*
Uttarakhand
Q5. What is Aggregate Turnover?
Ans. As per section 2(6) of the CGST Bill, aggregate turnover includes the aggregate value of:
*
all taxable and non-taxable supplies,
*
exempt supplies, and
*
exports of goods and/or service
*
all inter-state supplies
of a person having the same PAN.
Excludesvalue of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.
The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.
Q6. Is it necessary for the UN bodies to get registration under GST?
Ans. Yes. U/s Sec 25(9) of the CGST Bill, All UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified would be require

= = = = = = = =

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

= = = = = = = =

tory where he has no fixed place of business.
Q9. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non-Resident Taxable person?
Ans. A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. As per Sec 27(1),the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or for a period of ninety days from the effective date of registration,whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
Q10. What if the person makes supply from territorial waters of India?
Ans. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union

= = = = = = = =

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

= = = = = = = =

nce deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought.
Q13. Whether the Registration granted to any person is permanent?
Ans. Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
Q 14. Whether amendments to the Registration Certificate is permissible?
Ans. Yes. In terms of Sec 28 of CGST Bill, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within a period of 15 common working days from the date of receipt of application for amendment.
Provided th

= = = = = = = =

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

= = = = = = = =

30 days from the date of receipt of reply to SCN (in cases where the cancellation is proposed to be carried out suo moto by the proper officer) or from the date of receipt of application for cancellation (in case where the taxable person/legal heir applies for such cancellation)
Q16. Whether cancellation of Registration under means cancellation under CGST Act also?
Ans. Yes. The cancellation of registration under one Act (say SGST Act or UTGST Act) shall be deemed to be a cancellation of registration under the other Act i.e. CGST Act.(Section 29 (4))
Q17 Whether a Registration once cancelled, be revoked?
Ans. Yes, as per section 30 of the CGST Bill a taxable person whose registration has been cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner.
Q18. Will ISD be required to be separately registered other than the existing taxpayer registration?
Ans. Yes, the ISD registration is for

= = = = = = = =

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

= = = = = = = =

x
j.
Every E Commerce Operator;
k.
Every person supplying Online Information and database access or retrieval service from a place outside India to a person in India, other than a registered taxable person; and
l.
Such other person or class of persons as may be notified by the Central/ State Government on recommendation of the Council.
Q. 21 Who are the persons Not Liable to get registered?
Ans. Following persons are not liable to get registered as per section 23:
* Any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act;
* An agriculturist, for the purpose of agriculture.
Q 22. What are the special cases in which a person is liable to register under GST?
Ans As per section 22 of CGST Bill, special cases in Registration are as follows:
* Every person who,on the day immediately preceding the appointed day, is registered or holds a license under present law, shall be liable t

= = = = = = = =

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

= = = = = = = =

cation by the departmental officers within three months, will be converted into final registration certificate. For converting the provisional registration to final registration the registrants will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of the provisional GSTIN number. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have their businesses.
Q 24. What are forms for registration under GST?
Ans. The various Forms as prescribed in relation to Registration are as follows:
Sl.
Form
Description
1.
REG-01
Application for Registration u/s 22The GST Bill 2017
2.
REG-02
Acknowledgement
3.
REG-03
Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation
4.
REG-04
Application for filing clarification Registration / Amendment / Cancellation / Revocation

= = = = = = = =

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

= = = = = = = =

14.
REG-13
Application for Amendment in Particulars subsequent to Registration
15.
REG-14
Order of Amendment of existing Registration
16.
REG-14
(may be 15)
Application for cancellation of registration
17.
REG-16
Show Cause Notice for Cancellation of Registration
18.
REG-17
Reply to the show cause notice
19.
REG-18
Order for Cancellation of Registration
20.
REG-19
Order for dropping of proceeding of cancellation of registration
21.
REG-20
Application for Revocation of Cancelled Registration under The GST Bill 2017
22.
REG-21
Order for Approval of Application for Revocation of Cancelled Registration
23.
REG-22
Show cause notice for why application submitted for revocation should not be rejected
24.
REG-23
Reply to show cause notice for why application submitted for revocation should not be rejected
25.
REG-24
Application for Enrolment of Existing Taxpayer
26.
REG-25
Provisional Registration Certificate to existing taxpayer
27.
REG-26
Applicati

= = = = = = = =

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

= = = = = = = =

GST COMPLIANCE RATINGS TO IMPROVE TAX MANAGEMENT
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-4-2017

GST law provides for Goods and Services Tax Compliance Rating which is a new concept in India. Presently, there is no system of compliance rating under any tax laws in India. GST compliance rating is a concept which will be experimented as a legal provision for the first time in our country. Accordingly, every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act. Every taxable person irrespective of its nature or size or turnover shall be assigned a GST compliance rating.
As a governance issue, it is a fact that taxes and their compliances are increasingly being discussed at board level.
Statutory Provisions
Section 149 of the Central Goods and Services Tax Act, 2017 contains provision in respect of GST compliance rating as under:
"(1) Every registered person may

= = = = = = = =

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

= = = = = = = =

nce rating.
Accordingly, it can be said that :
* GST compliance rating is a new concept in GST. All the taxable persons will be assigned rating scores on the basis of his record of compliance of provisions of the GST law.
* The various compliance parameters on which the performance will be evaluated would be prescribed.
* The compliance rating scores would be updated on periodical basis and would be intimated to the taxable person and also the information of which would be put in public domain.
Salient features of Compliance Rating
* Every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act irrespective of its nature or size or turnover.
* Compliance rating scores could be based on
* promptness of paying taxes,
* timely e-filing of returns,
* matching of transactions,
* transparent reconciliations,
* adherence to various time limits,
* cooperation in dealing with tax department etc.

= = = = = = = =

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

= = = = = = = =

evant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative / monitoring purposes. The rating would be based on tax payer's record of compliance with the provisions of CGST, IGST and SGST. The details of parameters and methodology for rating would be as prescribed.
The compliance rating score will be updated periodically and will be intimated as follows:
* to the taxable person
* will be placed in the public domain
In terms of sub-section (3) of section 149 of the CGST Act, 2017, the GST compliance rating score shall be updated at periodic intervals and intimated to the taxable person and also placed in the public domain in the manner prescribed. The parameters and criteria as well as methodology shall be prescribed by way of regulations / guidelines.
Since GST shall operate on electronic platform, GSTN may be entrusted with the responsibility of determining rating scores based on parameters, its perio

= = = = = = = =

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

= = = = = = = =

ld also add to efficiency of transactions, timely input tax credit and lessee hurdles in reconciliations. It would also add to organization's reputation. Large organizations and rated or listed companies including PSU's may prefer and choose to deal with good rated suppliers / vendors / enterprises.
The GST compliance sores will primarily be based on compliances with law and rules. These could cover, inter alia, the following:
* Filing of appeals an monthly basis
* Matching of transactions, i.e., no mismatch of invoices
* Filing of regular and annual returns timely and correctly
* Timely payment of proper taxes
* Correct utilization of input tax credit and its disclosure
* Correct deduction of TDS / TCS, whereable applicable
* Findings in scrutiny of returns / audit findings
* Refund claims etc.
These ratings and expected to be measured at periodic of tax payers and their dissemination on public platform.
Impact of GST Ratings
GST ratings would allow business ente

= = = = = = = =

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

= = = = = = = =

Deemed Export – Invoicing under GST
Query (Issue) Started By: – Ramaswamy S Dated:- 28-4-2017 Last Reply Date:- 4-5-2017 Goods and Services Tax – GST
Got 1 Reply
GST
At present an EOU is allowed to invoice to another EOU in free foreign currency. No ED is charged. However, VAT is leviable if Intra State and CST (reimbursable) if Inter State.
Under the GST regime, the invoice is to be uploaded onto the GSTN. IGST is leviable on Inter State supply of goods from one EOU to another and CGST+SGST if the supply is Intra State (from one EOU to another EOU).
Query: Whether an EOU is allowed to invoice to another EOU (Intra State supplies) charging CGST+SGST in free foreign currency.
Neither SEZ authorities nor the CE/ Customs have

= = = = = = = =

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

= = = = = = = =

Jaitley promises no surprises in GST rate fixation
GST
Dated:- 28-4-2017

New Delhi, Apr 28 (PTI) Finance Minister Arun Jaitley today promised not to spring any surprises in fixing tax rates under the new GST regime, saying they will not be "significantly different" from current levels.
He, however, said companies should pass on to consumers the benefit of reduction in taxes under GST which will eliminate the current compounding effect of different central and state levies.
The GST Council, headed by Jaitley and comprising representatives of all the states, is scheduled to meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying at least 10 indirect taxes into the Goods and

= = = = = = = =

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

= = = = = = = =

GST Council has so far had 13 meetings and has never had to resort to voting to decide on any issue.
"And therefore all states representing different political complexions, have all agreed (on GST structure)," he said.
The Finance Minister said the Council is of the opinion that any benefit accruing from lower tax rates under GST should be passed on to consumers.
"Profit is not a bad word…
but unfair enrichment is.
And therefore the benefit of reduction in taxation is a benefit that consumers are entitled to. And that's not a principle that can be seriously contested," he said.
The GST laws approved by Parliament have incorporated an anti-profiteering provision to ensure that the reduction of tax incidence is

= = = = = = = =

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

= = = = = = = =

INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-3) (Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 28-4-2017

This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are aggregate turnover, agriculturist, assessment, associated enterprise, audit and authorized representative.
Aggregate Turnover [Section 2(6)]
The aggregate turnover is used for the purpose of calculation of threshold limit of INR 20 lakhs / 10 lakhs for registration and also calculation of eligibility of composition levy under section 10 of the Act.
'Aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following –
* Value of all taxable supplies of goods and services
* Value of exempt supplies of goods and services
* Value of all goods and services exported
* Value of inter-state supplies
H

= = = = = = = =

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

= = = = = = = =

he definition of agriculture and agriculturist are important because of the fact that an agriculturist for the purpose of agriculture is not liable for registration under the Act.
Following stipulations are relevant for understanding the meaning of agriculturist:
* Only an individual or Hindu undivided family (HUF) can be considered as an agriculturist.
* Cultivation of land personally is the pre-condition for being an agriculturist.
* Agriculturist shall not be considered as a taxable person.
* Ownership of the land is not a factor to be considered. It is not important whether the land is owned or leased one.
* It is also not a condition that the agriculturist should be involved in agriculture for full time.
* Cultivation of land through own labour, by labour of own family or servants employed on wages in cash or kind will be considered as own cultivation.
* A person will be considered as an 'agriculturist' only when a person cultivates land personally. To culti

= = = = = = = =

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

= = = = = = = =

sment of non-filers of return (Section 62)
* Assessment of unregistered persons (Section 63)
* Summary assessment in special cases (Section 64)
Such assessments are subject to adjudication procedure which involves observance of principles of natural justice. The person who is assessed is called assessee. (i.e., taxable person).
Associated Enterprise [Section 2(12)]
Associated enterprise, in relation to another enterprise, means an enterprise-
* which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or
* in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise.
As per section 92A of the Income Tax Act, 1961,sub-section

= = = = = = = =

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

= = = = = = = =

or members of the governing board, or one or more of the executive directors or members of the governing board, of each of the two enterprises are appointed by the same person or persons; or
* the manufacture or processing of goods or articles or business carried out by one enterprise is wholly dependent on the use of know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, or any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights; or
* ninety per cent or more of the raw materials and consumables required for the manufacture or processing of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by persons specified by the other enterprise, and the prices and other conditions relating to the supply are

= = = = = = = =

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

= = = = = = = =

y relationship of mutual interest, as may be prescribed.
Audit [Section 2(13)]
In CGST law, there are provisions for audit by tax authorities.
Audit implies:
* examination of records, returns and other documents –
* maintained / furnished by a taxable person
* under GST law / any other law or rules
* Verification of correctness of –
* turnover declared
* taxes paid
* refund claimed, and
* input tax credit availed
* Assessment of compliances with provisions of GST law and rules.
All the registered taxable persons having a turnover beyond the prescribed limit are required to get their accounts audited from a Chartered Accountant or a Cost Accountant and file the audit report and the reconciliation statement with the proper officer.
There are also provisions for a 'Special audit' to be carried out by a Chartered Accountant or a Cost Accountant. Such audit can be allotted after prior approval of Commissioner in the circumstances where a view is made by an of

= = = = = = = =

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

= = = = = = = =

Jharkhand assembly passes GST bill
GST
Dated:- 27-4-2017

Ranchi, Apr 27 (PTI) Jharkhand Assembly today passed the Jharkhand Goods and Services Taxes Bill, 2017 to pave the way for roll out of GST from July 1.
A one-day special session of the assembly was convened to take up the bill.
Urban Development Minister C P Singh placed the bill in the assembly which was passed by voice vote.
Later, Singh told reporters that the bill was passed unanimously.
He said it is a step towards &

= = = = = = = =

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

= = = = = = = =

Genrating of Sales Invoice in Different unit
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 26-4-2017 Last Reply Date:- 28-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
We are having two different manufacturing unit in same state. Since we have registered in Central Excise in different jurisdiction we have using different serial number for issuing sale invoice.
After implementation of GST Act, can we continue to do so or we have to keep common invoice under one GST

= = = = = = = =

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

= = = = = = = =

Section 145 of GST Law
Query (Issue) Started By: – Yogesh Panchal Dated:- 26-4-2017 Last Reply Date:- 28-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
A registered taxable person, who was not liable to be registered under the earlier law or who was engaged in the manufacture of exempted goods under the earlier law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions:
* such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
* t

= = = = = = = =

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

= = = = = = = =

rule 6(3)a of Cenvat Credit Rules-2004, maintain separate account of manufacturing inputs material & for the trading material also, revert service tax credit at turnover ratio prescribe in the central excise law. In above scenario please guide following points.
* Trading warehouse material on which we have not take the credit, we have not charged excise duty at the time of sales, not collect duty from our customer, but if duty paid stock laying in trading warehouse on 30th June-2017. As a closing stock. also after implementation of GST, we have liable to pay GST on above duty paid trading goods, which excise duty paid but do not take credit , in the above case tax paid two time, first at the time of purchase paid excise duty & after 1st J

= = = = = = = =

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

= = = = = = = =

Section 143 of GST Law
Query (Issue) Started By: – Yogesh Panchal Dated:- 26-4-2017 Last Reply Date:- 21-10-2017 Goods and Services Tax – GST
Got 1 Reply
GST
A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the amount of cenvat credit carried forward in a return, furnished under the earlier law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed:
But Followi

= = = = = = = =

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

= = = = = = = =

GST to boost domestic manufacturing, won't up inflation: Adhia
GST
Dated:- 25-4-2017

New Delhi, Apr 25 (PTI) The government today said GST will not lead to inflation and rather make domestic goods competitive via-a-vis imported items.
Revenue Secretary Hasmukh Adhia dismissed fears that GST implementation will lead to a spurt in prices, saying that unlike in other countries, the transition to the new tax regime would be smooth in India.
He said several countries witnessed inflation following GST rollout as they had single point taxation system. In the case of India, there are multiple points of taxation and hence the possibility of sudden spurt in inflation is remote.
"Presently, we are tapping VAT at each stage of sup

= = = = = = = =

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

= = = = = = = =

milar GST rate will be applicable and hence, there will be no advantage for the imported goods.
The government levies countervailing duty (CVD) and special additional duty (SAD) on imported goods to protect domestic manufacturers.
"The incidence of tax on imported goods will be equivalent to the tax paid by the local industry. This will strengthen domestic manufacturing and Make in India," Adhia said.
Goods and services tax (GST), which is proposed to be rolled out from July 1, will unify at least 10 different central and state levies and make India a uniform market for seamless transfer of goods and services.
Adhia said as many as 71 per cent of the existing taxpayers have already migrated to the GSTN portal and the CBEC has

= = = = = = = =

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

= = = = = = = =

nvoice-wise detail.
With regard to the provision in the Act on refund of IGST paid by international tourists, he said it will not be implemented with effect from July 1 GST rollout date.
Asked whether VAT would be refunded at the airport to foreign tourists, Adhia said: "We have kept that provision in the Act, but to implement it will take time. Immediately, it won't be available to foreign tourists, but after some time, we will see. We will have to develop a mechanism for it. We are not implementing this provision from July 1."
The IGST Act provides that integrated tax paid by tourists leaving India on any supply of goods taken out of the country by him shall be refunded. However, the conditions and safeguards are yet to b

= = = = = = = =

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

= = = = = = = =

Presentation for GST Conclave/Workshop
GST
Dated:- 25-4-2017

Presentation for GST Conclave/Workshop
=============
Document 1
Understanding Goods and Services Tax
Agenda
Design of GST
Main features of GST Law
Administration and IT Network
Benefits of GST and Way Forward
1
The Effort and Work Done
10 Years…
In Making
14 EC Meetings in 10 years and 13 GSTC Meetings in 6 months
30 +
Sub-Groups & Committees
175 + Officers Meetings
2
18000 +
Man Hours of discussion by GST Council
Constitution Amendment and 5 Laws approved by collaborative effort
Existing Indirect Tax Structure in India
Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services)
3
Central Excise duty
Additional duties of excise
Excise duty levied under Medicinal & Toilet Preparation Act
Additional duties of customs (CVD & SAD)
Service Tax
Surcharges & Cesses
State VAT / Sales Tax
Cen

= = = = = = = =

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

= = = = = = = =

sters of Finance / Taxation of each State
Quorum is 50% of total members
States – 2/3 weightage and Centre – 1/3 weightage
Decision by 75% majority
Council to make recommendations on everything related to GST including laws, rules and rates etc.
6
GST Council – Decisions
(1/2)
Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States)
Compounding threshold limit to be
Rs
. 50 lac
with –
Government may convert existing Area based exemption schemes into reimbursement based scheme
Four tax rates namely 5%, 12%, 18% and 28%
Some goods and services would be exempt
Separate tax rate for precious metals
7
Cess over the peak rate of 28% on specified luxury and sin goods
To ensure single interface – all administrative control over
90% of taxpayers having turnover below Rs. 1.5
cr
would vest with State tax administration
10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration
taxpayers having tur

= = = = = = = =

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

= = = = = = = =

ns
Automatic generation of returns
GST Practitioners for assisting filing of returns
GSTN and GST Suvidha Providers (GSPs) to provide technology based assistance
11
Main Features of the GST Act
(3/4)
Tax can be deposited by internet banking, NEFT / RTGS, Debit/ credit card and over the counter
Concept of TDS for certain specified categories
Concept of TCS for E-Commerce Companies
Refund to be granted within 60 days
Provisional release of 90% refund to exporters within 7 days
12
Main Features of the GST Act
(4/4)
Interest payable if refund not sanctioned in time
Refund to be directly credited to bank accounts
Comprehensive transitional provisions for smooth transition of existing tax payers
to GST regime
Special procedures for job work
System of GST Compliance Rating
Anti-Profiteering provision
13
GST Network (GSTN)
A section 25 private limited company with Strategic Control with the Government
To function as a Common Pass-through portal for taxpayers-
submit r

= = = = = = = =

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

= = = = = = = =

Inflation
Ease of Doing Business
Decrease in “Black” Transactions
Benefits of GST (
2/2
)
7
8
9
10
Simplified Tax Regime
Reduction in Multiplicity of Taxes
Consumption Based Tax
Abolition of CST
18
More informed consumer
Poorer States
to Gain
Make in India
11
Exports to be Zero Rated
12
Protection of Domestic Industry – IGST
Way Forward
SGST law to be passed by the State Legislatures
GST Council to fit tax rates to various categories of Goods or Services
Sector Wise guidance notes to be prepared
Migration and handholding of existing tax payers
Outreach program for trade and industry
Change Management
19
Thank You
The following material is available on
www. cbec.gov.in
Presentation on GST
GST – Concept & Status
FAQs on GST in Hindi and English
CGST, UTGST, IGST & Compensation Acts
Draft 14 Rules
Constitutional Amendment Act
Rs. 132
32%
Rs. 100
Rs. 128
Rs. 100
Cost of production of goods is Rs. 100
Cumulative taxes of 32%

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – AN OVERVIEW
GST
Dated:- 25-4-2017

Goods and Services Tax (GST)
1. Benefits:
* GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry, government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive. GST aims to make India a common market with common tax rates and procedures and remove the economic barriers thus paving the way for an integrated economy at the national level. By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. GST is a destination based tax. It follows a multi-stage collection mechanism. In this, tax is collected at every stage and the credit of tax paid at the

= = = = = = = =

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

= = = = = = = =

roving the balance of payments position. Exporters with clean track record will be rewarded by getting immediate refund of 90% of their claims arising on account of exports, within seven days.
* GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance. GST is likely improve India's ranking in the Ease of Doing Business Index and is estimated to increase the GDP growth by 1.5 to 2%.
GST will bring more transparency to indirect tax laws. Since the whole supply chain will be taxed at every stage with credit of taxes paid at the previous stage being available for set off at the next stage of supply, the economics and tax value of supplies will be easily distinguishable. This will help the industry to take credit and the government to verify the correctness of taxes paid and the consumer to know the exact amount of taxes paid.
The taxpayers would not be required to maintain records and show compliance with a myriad of

= = = = = = = =

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

= = = = = = = =

re and States simultaneously levying tax on a common tax base. The GST to be levied by the Centre on intra-State supply of goods or services would be called the Central tax (CGST) and that to be levied by the States including Union territories with legislature/Union Territories without legislature would be called the State tax (SGST)/ Union territory tax (UTGST) respectively.
(ii) The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified. The GST would replace the following taxes currently levied and collected by the Centre:
a. Central Excise Duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)
e. Additional Duties of Customs (comm

= = = = = = = =

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

= = = = = = = =

rs eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits. Taxpayers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption.
(vi) Composition levy: Small taxpayers with an aggregate turnover in a financial year up to Rest. 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The rate of tax for CGST and SGST/UTGST each shall not exceed –
* 2.5% in case of restaurants etc
* 1% of the turnover in a state/ UT in case of a manufacturer
* 0.5% of the turnover in state/UT in case of other suppliers.
A taxpayer opting for composition levy shall not collect any tax from his customers nor shall he be entitled to claim any input tax credit. The composition scheme is optional. Taxpayers making inter-State supplies shall not be eligible for composition scheme. The governm

= = = = = = = =

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

= = = = = = = =

t below ₹ 5 crore shall use 2-digit code and the taxpayers whose turnover is ₹ 5 crore and above shall use 4-digit code. Taxpayers whose turnover is below ₹ 1.5 crore are not required to mention HSN Code in their invoices.
(x) Exports and supplies to SEZ shall be treated as zero-rated supplies. The exporter shall have an option to either pay output tax and claim its refund or export under bond without tax and claim refund of Input Tax Credit.
(xi) Import of goods and services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. The IGST paid shall be available as ITC for further transactions.
3. GST Council
The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States. It has been specifically provided that the GST Council, in its discharge of various functions, shall be guided by the need for a harmonized structure of GST

= = = = = = = =

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

= = = = = = = =

nd credit it to the account of the Government. The return filed by the tax payer would be treated as self-assessed.
d) Payment of tax shall be made electronically through internet banking, or also through credit card and through the modes of Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT). Smaller taxpayers shall be allowed to pay tax over the bank counter. All challans for payment of tax shall be generated online on the Goods and Services Tax Network (GSTN).
e) The taxpayer shall furnish the details of outward supplies electronically without any physical interface with the tax authorities. Inward supply details would be auto-drafted from the supply details filed by the corresponding suppliers.
f) Taxpayers shall file, electronically, monthly returns of outward and inward supplies, ITC availed, tax payable, tax paid and other prescribed particulars. Composition taxpayers shall file, electronically, quarterly returns. Omission/incorrect particulars can

= = = = = = = =

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

= = = = = = = =

credit shall be allowed on capital goods on its receipt as against the current Central Government and many State Government practice of staggering the credit in more than one installment. Unutilized input tax credit can be carried forward. The facility of distribution of input tax credit for services amongst group companies has been provided for through the mechanism of Input Service Distributor (ISD).
6. Refund
Time limit for claiming online refund has been increased from one year to two years. Refund shall be granted within 60 days from the date of receipt of complete application. Interest is payable if refund is not sanctioned within the stipulated period of 60 days. If the refund claim is less than ₹ 2 lakhs, there is no need for the claimant to furnish any documentary evidence to prove that he has not passed on the incidence of tax to any other person. Only a self-certification to this effect would suffice. Refund of input tax credit shall be allowed in case of exports or

= = = = = = = =

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

= = = = = = = =

an be sought in respect of more subjects than allowed at present. The subjects are: classification of goods/or services, time and value of supply, rate of tax, admissibility of input tax credit, liability to pay tax, liability to take registration and whether a particular transaction amounts to a supply under GST law.
b) Advance ruling can be sought not only for new activities but also for existing activities. The facility of appeal, which is not there under the Central law, has been provided in the GST Law.
c) The applicants or the Department, if aggrieved by the advance ruling, would henceforth get the opportunity to file an appeal before the Appellate Authority for revision of the ruling. Advance Ruling can be obtained more easily as there will be one Advance Ruling Authority (as also the Appellate Authority) in every State.
9. Other provisions of GST
The provisions worth mentioning here are:
(i) Valuation of goods shall be done on the basis of transaction value i.e. the invoi

= = = = = = = =

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

= = = = = = = =

GST Issues in MSME Sector
By: – Ravi Kumar Somani
Goods and Services Tax – GST
Dated:- 25-4-2017

Medium Small and Minor enterprises contributes approximately 37% of our Nations GDP. Any negative implication of GST on this segment can directly knock off the player from the competitive business market. This article tries to put forth various issues that this industry could face due upon passage GST. The article also try to provide the possible solution for the issues highlighted as explained below.
1) Low Basic Exemption Limit:
Under Excise law, the SSI's enjoy the basic exemption limit up to ₹ 1.5 crore which itself has been continuing since long time even though inflation has led to increase in prices of various goods/ services over a period of time.
Further, under GST, the basic exemption limit has been proposed to be reduced to a very low threshold limit of ₹ 20 lakhs. Further, in some cases of e-commerce, reverse charge, output inter-state supply activ

= = = = = = = =

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

= = = = = = = =

. Non-bifurcation of this could lead to erosion of this sector and also bring monopolistic market of large players instead of competitive market. Therefore, it is suggested that Government must come up with some notification providing the relief in this regard which is in the best interest of this sector and supports its growth objective.
2) High Compliance burden:
It is seen that GST law demands high compliance. Key compliance requirements are as under:
* Three returns be filed in each month for every state. Further, returns must be filed for TDS, ISD (if applicable). Also, one annual return with reconciliation statement has to be filed for every state;
* Registration must be taken in every state and there is no concept of centralised registration;
* Accounting needs to be timely updated and the same needs to be maintained state-wise to reconcile the taxation with accounts at state level;
* GST computations, liability calculation, credit availment etc. has to be done on mont

= = = = = = = =

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

= = = = = = = =

egative impact on the industry and its contribution to the economy.
3) Taxation under reverse charge for un-registered purchases:
In the GST bill, it is proposed that if any goods or services are supplied by a person who is unregistered and supplied to a registered person, then GST needs to be paid by the registered person under reverse charge as a recipient. Therefore, even if any small businesses who does not take registration and claim the basic exemption threshold then the person receiving goods or services from them need to pay GST under reverse charge. This provision shall have negative impact as businesses would not prefer to deal with unregistered persons and to take the additional burden of taxation under reverse charge. Therefore, this provision directly impacts the business of small sector negatively and virtually forces them to either register or to shut the business which was ideally not the principles guiding the existence of the GST taxation.
4) Taxation on stock Tran

= = = = = = = =

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

= = = = = = = =

the return of goods sent on sale or return basis. However, in GST regime, the maximum time limit for the return of goods sent on sale or return basis is 6 months and if the same is not approved within the said time limit then the invoice needs to be issued and the goods shall be deemed to have been supplied since time of supply for payment of tax would arise. In various small scale industries like ready-made garment industry, the norm is to send goods to Consignment Sales Agents (CSA) and customers on a “sale or return” basis. The norm in such industries is that the CSAs / customers return the goods after the season is over. However, casting time-limit on return of goods would have negative impact on such sectors. Therefore, it is suggested to remove this provision and continue with the present practice of paying GST only once actual supply takes place.
6) Tax on Advances
Advances received against supply of goods and/or services are taxable in GST regime. Collection of GST on advance

= = = = = = = =

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

= = = = = = = =

resently in case of VAT laws or if GST can be made only on receipt basis as prevalent in service tax for small individuals and partnership firms. This shall ease the compliance and cash flow burden.
7) Availability of Composition Levy
Non-availability of composition scheme to those who are supplying services or making any supply of goods which are not leviable to tax under the Act or if any inter-state supply is made seems to be harsh on such person. Small services suppliers only shall be required to comply with the normal provisions of the law which could prove to be cumbersome for such suppliers. Further, small suppliers making few of the supplies not chargeable to tax while majority of supplies are taxable may find this provision an unnecessary burden on them.
It is suggested that eligibility for composition scheme be based on the turnover during a particular financial year and be made available uniformly to all suppliers whether supplying goods or services or both. Alternatively

= = = = = = = =

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

= = = = = = = =

tax to be deposited by the supplier to the credit of appropriate Government in order to enable the purchaser to avail the input tax credit on such supply made may cause undue hardship to the assesses.
It is suggested that the pre-conditions relating to payment of tax to the credit of Government and mandatory filing of return be deleted / removed and the same must be reconsidered and liberalized to enable the small sector to avail input tax credit of tax paid by them.
Alternatively, if the Government believes that certain taxable persons in the unorganized sector may not deposit the collected tax to Government the concept of reverse charge be made applicable to them instead of denying/ delaying the credit based on the non-compliance by other party to the contract.
9) Power to Arrest & Prosecution:
A Commissioner of CGST or SGST can authorize an arrest of a person if “has reason to believe” that the person has committed any offence punishable under the GST law. The person can be arre

= = = = = = = =

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

= = = = = = = =

Input credit on closing stock as on appointed date
Query (Issue) Started By: – Govind Gupta Dated:- 24-4-2017 Last Reply Date:- 25-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Sirs
As we are trader and currently not eligible for input tax credit of CVD paid on our imports and ED paid on local purchases, what is the process of computation of credit to be claimed under GST, also as we know, there are two options for your total inventory
1. if you have duty paying document for the closing stock of inventory,
a. you are eligible for full credit ( what will the value of credit, is it what we have actually paid or some other computed value)
b. does this stock need to be less than 1 year old
c. do we need to transfer

= = = = = = = =

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

= = = = = = = =

Bihar Legislative Assembly approves GST
GST
Dated:- 24-4-2017

Patna, Apr 24 (PTI) The Bihar Legislative Assembly on Monday unanimously adopted the Goods and Services Tax (GST) bill along with the Bihar taxation (Amendment) Bill.
With ruling JD(U), RJD, Congress and even opposition BJP and its NDA partners in support of GST, the House adopted the related Bills to pave way for roll out of GST through voice vote.
Chief Minister Nitish Kumar was present in the House when Commercial Tax minister Bijendra Prasad Yadav moved the Bihar Goods and Service Bill, 2017 and the Bihar Taxation (Amendment) bill, 2017.
The two bills would be taken up in the state Legislative Council in post-lunch session.
The Bihar edition of GST related b

= = = = = = = =

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

= = = = = = = =

of GST even when BJP was opposed to it when he was heading a NDA ministry in Bihar with the saffron party.
"A statesman looks for good of next generation while a politician merely looks for next election while taking decision on such issues," Yadav said in praise of Kumar.
Taking a swipe at BJP and more particularly Prime Minister Narendra Modi, Yadav said "as a Chief Minister of Gujarat Narendra Modi was opposed to GST but after his elevation to post of PM he came in support of it."
Leader of Opposition Prem Kumar lauded the prime minister for the historic GST legislation which he said would help in checking corruption and pave way for more investment.
Congress Legislature Party leader Sadanand Singh said that his p

= = = = = = = =

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

= = = = = = = =

India's growth to accelerate further due to GST: Jaitley
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 sai

= = = = = = = =

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

= = = = = = = =

Presentations on NITI Aayog’s work, GST, and raising agricultural income, made at meeting of Governing Council, NITI Aayog
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

= = = = = = = =

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

= = = = = = = =

and a 3 year action agenda. He gave an outline of the draft Action Agenda circulated at the meeting, which had 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 Mini

= = = = = = = =

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

= = = = = = = =

Carry forward of input credit
Query (Issue) Started By: – arun aggarwal Dated:- 23-4-2017 Last Reply Date:- 25-4-2017 Goods and Services Tax – GST
Got 10 Replies
GST
Sir
I 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 credit
Arun
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 B

= = = = = = = =

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

= = = = = = = =

carried. At present it is wild guess and ray of hope in favour of assessees.
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

= = = = = = = =

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

= = = = = = = =

Key highlights of Draft GST Rules on Accounts & Records, Appeals & Revision and Advance Ruling
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 22-4-2017

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 own

= = = = = = = =

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

= = = = = = = =

(c) the complete addresses of the premises where the goods are 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 princi

= = = = = = = =

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

= = = = = = = =

ules on Accounts & Records
Key highlights of the Draft GST Rules on Appeals & Revision:
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 wit

= = = = = = = =

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

= = = = = = = =

ppeal to the Appellant Tribunal).
* There shall be no fee for application made before the Appellate Tribunal 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 R

= = = = = = = =

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

= = = = = = = =

d provision of services, when the taxable event in GST would be supply. Further, the quantum of details and number of records to be maintained 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

= = = = = = = =

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

= = = = = = = =

TAX COLLECTED AT SOURCE UNDER GST REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
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 represe

= = = = = = = =

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

= = = = = = = =

during any month by all registered persons through the operator reduced 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 withi

= = = = = = = =

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

= = = = = = = =

ining the details of outward supplies of goods or services or both effected through 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 fina

= = = = = = = =

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

= = = = = = = =

n 52(10) provides that the amount in respect of which any discrepancy is communicated and 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

= = = = = = = =

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

= = = = = = = =

cordingly.
Any discrepancy in the details furnished by the operator and those declared by the supplier shall be made available to the supplier 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

= = = = = = = =

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

= = = = = = = =

ice.
Section 52(14) provides that any person who fails to furnish the information required by the notice served, shall without prejudice to any action that 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 wo

= = = = = = = =

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

= = = = = = = =