Goods and Services Tax

INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-2)(Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 22-4-2017

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

= = = = = = = =

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

= = = = = = = =

tion or pledge.
* Any beneficial interest in movable property not in possession of claimant, either actual or constructive.
* Civil courts should recognize such claim as worthy of affording grounds for relief.
* Such claims or interest could be existing, accruing, conditional or contingent.
* Actionable claims can be assigned
* Actionable claims can be enforced in a court of law.
Examples of claims which are 'actionable claims':
* Claim for arrear rent.
* Claim for rent to fall due in future.
* An option offered to repurchase the property once sold.
* Benefit of a contract giving option to purchase the land.
* Contract for purchase of goods is endorsed by the purchaser, by writing on the back of the contract under his signature, that he has sold all his rights and interest in the goods purchased under the said contract to a certain person who is named and properly identified in such endorsement.
* Unsecured debts
* Wining from lotteries
* Right to cla

= = = = = = = =

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

= = = = = = = =

may be permanent address or current residing address. For persons other than individual, it may or may not be the registered address which is mentioned at the time of registration under any law for the time being in force.
Address of delivery is one of the important factors which help in determination of nature of transaction like inter-state or intra-state supply.
Address on record [Section 2(3)]
It is the address of recipient as is available in the records of supplier Location of recipient of supply of goods and / or services is one of the factors to be considered for the purpose of determination of nature of transaction like inter-state or intra state.
This factor is equally relevant irrespective of whether the recipient is registered taxable person or unregistered taxable person.
Address on record would imply address as recorded in the records of supplier of goods or services. Such address may therefore, be different from the registered address or address of head office, fact

= = = = = = = =

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

= = = = = = = =

f of somebody (i.e., principal). An agent would include any of the following :
* factor
* broker
* commission agent
* arhatia
* del credere agent
* auctioneer
* mercantile agent , or
* any such other person by whatever name called
Under the agency principles, it is the principal who is responsible for the actions of agent and agent has no capacity of his own.
Under the GST law, an agent has been considered as a separate taxable person and has been made liable for registration under the Act. More so the benefit of threshold limit will not be available to an agent. Thus, an agent even though having aggregate annual turnover of less than threshold limit of INR 20 lakhs / 10 lakhs, as the case may be, would be liable for registration.
The transactions between the principal and agent would be considered as transactions of supply of goods and / or services. Even though there may be no consideration in such transactions, still it would be liable for taxation as covered by p

= = = = = = = =

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

= = = = = = = =

Demand confirmed by the Court
Article 8
Bill
Appeals and Revision
GST – Appeals and Revision – Draft Rules – 19-4-2017
8. Demand confirmed by the Court
The jurisdictional officer sha

= = = = = = = =

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

= = = = = = = =

Appeal to the High Court
Article 7
Bill
Appeals and Revision
GST – Appeals and Revision – Draft Rules – 19-4-2017
7. Appeal to the High Court
(1) An appeal to the High Court under sub-section (1) of section 117 of the Act shall be filed in FORM GST APL-08.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-08 shall be signed in the manner specified in rule Registration.19.
–
Statute, statutory provisions legislation, law, enactment, Acts,

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

the date of submission of such copy.
Explanation. – The appeal shall be treated as filed only when the final acknowledgement indicating the appeal number is issued.
(5) The fees for filing of appeal or restoration of appeal shall be one thousand rupees for every one lakh rupees of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in the order appealed against, subject to maximum of twenty five thousand rupees.
(6) There shall be no fee for application made before the Appellate Tribunal for rectification of errors referred to in sub-section (10) of section 112.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Ta

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

Certification of copies of the advance rulings pronounced by the Authority
Article 3
Bill
Advance Ruling
GST – Advance Ruling – Draft Rules – 19-4-2017
3. Certification of copies of t

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

Qualification and appointment of members of the Authority for Advance Ruling
Article 1
Bill
Advance Ruling
GST – Advance Ruling – Draft Rules – 19-4-2017
1. Qualification and appointment of members of the Authority for Advance Ruling
The Central Government and the State Government shall appoint an officer in the rank of Joint Commissioner as member of the Authority for Advance Ruling.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Ta

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

Transition Provisions under CGST Act,2017 with Rules
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 21-4-2017

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

ocuments evidencing payment of value added tax.
*
Such credit shall be allowed at 40% of state tax .
*
Scheme is for six tax period
*
stock stored should be easily identifiable
Scheme is available subject to the following
*
Such goods were not exempt or nil rated
*
Document of procurement is available with RP
*
Submit statement in GST TRAN-1 form , the supply of such goods in each of six tax period.
*
Amount shall be credited in ECL in form GST PMT-2
[SGST Rule offering tax on MRP]
4. RP who is engaged in manufacturing of taxable as well as exempted goods or provision of taxable as well as exempted services shall be entitle to take credit under this Act.
*
Amount of cenvat credit carry forward in existing return as per sub section- 1 and
*
The amount of cenvat credit eligible in respect of input stock , semi-finished and finished goods on appointed day as prescribed in Sub rule- 3.
5. RP may take credit of eligible duties and taxes in respect of

= = = = = = = =

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

= = = = = = = =

if such invoices are received on or after the appointed day.
8. Where RP having centralised registration under the existing law has obtained registration under this Act , can take credit in electronic credit ledger, credit of the amount of CENVAT carry forward in return furnished under the existing law . If the original / revised return under the existing law has been filed within three months of appointed day. Such credit may be taken at any of the centralised place having the same PAN.
9. Where any cenvat has been reversed on account of non payment within three months under the existing law , can be reclaimed at the time of making payment of such services if the payment of such reversed amount has been made within three months from the appointed day.
10. The amount of credit under sub section 3, 4, and 6 shall be calculated in such way as may be prescribed.
Explanation -1 for the purpose of sub section 3,4 and 6 , the expression ” eligible duties and taxes” means
i) the addition

= = = = = = = =

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

= = = = = = = =

ional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957;
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;
(v) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985;
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; and
(viii) the service tax leviable under section 66B of the Finance Act, 1994,
in respect of inputs and input services received on or after the appointed day.
Transition provision relating to Job work [Section 141]
*
Where any input r

= = = = = = = =

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

= = = = = = = =

e and penalty
*
No tax shall be payable in above cases , if such goods are declared by manufacturer and job worker as prescribed.
Rule :
File declaration of stock in GST TRAN-1 detail of stock including capital goods specifying stock held as principal, agent or branch.
Miscellaneous Transition Provision [Section 142]
1. Where any goods on which duty has been paid is removed not earlier than six months before the appointed date , returned from the unregistered person within six months from the appointed day , the duty of refund shall be paid to registered person under the existing law. But if the goods are returned by registered person , return of goods shall be treated as supply of goods.
2. Where any contract has been entered before appointed day and the price of goods or services or both revised upward after the appointed day , RP here will issue supplementary invoice or debit notes within 30 days from the date of revision. Such revision shall be treated as supply under thi

= = = = = = = =

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

= = = = = = = =

Act.
6. In case of any assessment or adjudication proceeding before, on or after the appointed day shall be disposed off as per the existing law and if any credit arises shall be paid in cash. And in case of any demand , the same shall be recovered as arrear of tax under this Act.
7. In case of any return filed under the existing law has been revised after the appointed date and if any credit arises shall be paid in cash. And in case of any demand , the same shall be recovered as arrear of tax under this Act.
8. Despite anything provided in section 12 , no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the State VAT.
9. Despite anything provided in section 13 , no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under chapter V of Finance Act,1994.
10. Where any input goods sent for approval basis as per the existing law, not earlier than six months before appointed day

= = = = = = = =

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

= = = = = = = =

ANTI PROFITEERING MEASURES IN GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 21-4-2017

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

read with the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit) (Net Profit Margin) Regulations, 2014. Countries like Canada and New Zealand have also similar provisions.
Implementation of Provision
It is expected that there will be rules or guidelines for implementation of this provision in relation to who will implement this provision, constitution and business rules for authority to monitor, possible cost audit monitoring, from when this provision will be implemented and how authority will check and implement. Also, penalties, to be deterrent will also have to be determined in interest of customers as well as businesses. It will also have to be ensured that there is no hardship, harassment or undue interference by the Authority. At the same time, businesses are expected to be fair and reasonable as otherwise, market forces would lead to fair price determination in absence of any cartelization or unfair trade practice.
To conclude, it can be sa

= = = = = = = =

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

= = = = = = = =

RATE OF GOODS AND SERVICES TAX
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 20-4-2017

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

= = = = = = = =

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

= = = = = = = =

such conditions and restrictions as may be prescribed.
TCS
Section 52 (1) of the Act provides that every electronic commerce operator not being an agent, shall collect an amount calculated at such not exceeding 1%, as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the condition with respect to such supplies is to be collected by the operator.
TDS
Section 51(1) of the Act provides that the Government may mandate a department or establishment of the Central Government or State Government or a local authority or Governmental agencies or such persons or category of persons as may be notified by the Government on the recommendations of the council to deduct tax @ 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply under a contract, exceeds ₹ 2,50,000/-.
Under IGST Act
Section 5(1) provides that there

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

Carry forward of duty / tax credits in GST Regime and filing of returns- Pre requisite of enrollment in GST
Trade Notice No. 06/2017 Dated:- 20-4-2017 Trade Notice
GST
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX
7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003
C. No. IV/16/01/2017/Tech./3834
Date: 20.04.2017
Trade Notice No. 06/2017
Sub: – Carry forward of duty / tax credits in GST Regime and filing of returns- Pre requisite of enrollment in GST- Reg.
All Central Excise and Service Tax assessees are requested to enroll in GST immediately to enable carry forward of duty / tax credits and filing of returns without any interruptions and thereby proceed to GST regime in a smooth manner.
2. Duty credi

= = = = = = = =

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

= = = = = = = =

Draft GST Rules – Appeals and Revision
GST
Dated:- 19-4-2017

Chapter –
Appeals and Revision
1. Appeal to the Appellate Authority
(1) An appeal to the Appellate Authorityundersub-section (1) of section 107 of the Act shall be filed in FORMGSTAPL-01,[either] electronically [or otherwise] as may be notified by the Commissioner, and a provisional acknowledgement shall be issued to the appellant immediately.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-01 shall be signed in the manner specified in rule Registration.19.
(3) A hard copy of the appeal in FORM GST APL-01shall be submitted in triplicateto the Appellate Authority and shall be accompanied by a certified copy of the decision or order appealed against along with the supporting documents within seven days of filing of the appeal under sub-rule (1) and a final acknowledgement, indicating appeal number shall be issued thereafterin FORM GST APL-02by the Appellate Authority or

= = = = = = = =

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

= = = = = = = =

rderappealed against along with the supporting documents within seven days of filing the application under sub-rule (1) and an appeal number shall be generated by the Appellate Authority or an officer authorised by him in this behalf.
3.Appeal to the Appellate Tribunal
(1) An appeal to the Appellate Tribunal under sub-section (1) of section 112 of the Act shall be filed electronically, in FORM GST APL-05,on the common portal and a provisional acknowledgement shall be issued to the appellant immediately.
(2) A memorandum of cross-objections to the Appellate Tribunal under sub-section (5) of section 112 of the Act shall be filed in quintuplicate to the Registrar in FORM GST APL-06.
(3) The appeal and the memorandum of cross objections shall be signed in the manner specified in rule Registration.19.
(4) A hard copy of the appeal in FORM GST APL-05shall be submitted to the Registrar in quintuplicate and shall be accompanied by a certified copy of the decision or order appealed ag

= = = = = = = =

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

= = = = = = = =

fine, fee or penalty determined in the order appealed against, subject to maximum of twenty five thousand rupees.
(6) There shall be no fee for application made before the Appellate Tribunal for rectification of errors referred to in sub-section (10) of section 112.
4. Application to the Appellate Tribunal
(1) An application to the Appellate Tribunalunder sub-section (3) of section 112 of the Act shall be made electronically, in FORM GST APL-07, on the commonportal.
(2) A hard copy of the application in FORM GST APL-07shall be submitted to the Registrar in quintuplicate and shall be accompanied by a certified copy of the decision or order appealed against along with supporting documentswithin seven days of filing the application under sub-rule (1) and an appeal number shall be generated by the Registrar.
5. Production of additional evidence before the Appellate Authorityor the Appellate Tribunal
(1) The appellant shall not be allowed to produce before the Appellate Authori

= = = = = = = =

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

= = = = = = = =

ent opportunity to the appellant to adduce evidence relevant to any ground of appeal.
(2) No evidence shall be admitted under sub-rule (1) unless the Appellate Authority or the Appellate Tribunal records in writing the reasons for its admission.
(3) The Appellate Authority or the Appellate Tribunal shall not take any evidence produced under sub-rule (1) unless the adjudicating authority or an officer authorised in this behalf by the said authority has been allowed a reasonable opportunity –
(a) to examine the evidence or document or to cross-examine any witness produced by the appellant; or
(b) to produce any evidence or any witness in rebuttal of the evidence produced by the appellant under sub-rule (1).
(4) Nothing contained in this rule shall affect the power of the Appellate Authority or the Appellate Tribunal to direct the production of any document, or the examination of any witness, to enable it to dispose of the appeal.
6. Order of Appellate Authority or Appellate T

= = = = = = = =

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

= = = = = = = =

Draft GST Rules – Advance Ruling
GST
Dated:- 19-4-2017

Chapter –
Advance Ruling
1. Qualification and appointment of members of the Authority for Advance Ruling
The Central Government and the State Government shall appoint an officer having the experience of not less than three years in the rank of Joint Commissioner as member of the Authority for Advance Ruling.
2. Form and manner of application to the Authority for Advance Ruling
(1) An application for obtaining an advance ruling under sub-section (1) of section 97 of the Act shall be made on the common portal in FORM GST ARA-1 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49 of the Act.
(2) The applica

= = = = = = = =

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

= = = = = = = =

e Act.
(2) The appeal referred to in sub-rule (1), the verification contained therein and all relevant documents accompanying such appeal shall be signed, –
(a) in case of concerned officer or jurisdictional officer, by an officer authorized in writing by such officer; and
(b) in the case of an applicant,in the manner specified in rule Registration.19.
5. Certification of copies of the advance rulings pronounced by the Authority
A copy of the advance ruling pronounced by the Appellate Authority for Advance Ruling and duly signed by the Members shall be sent to-
(a) the applicant and the appellant;
(b) the concerned officer of Central Tax and State / Union Territory Tax;
(c) the jurisdictional officer of Central Tax and State

= = = = = = = =

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

= = = = = = = =

Draft GST Rules – Accounts and Records
GST
Dated:- 19-4-2017

CHAPTER-
ACCOUNTS AND RECORDS
1. Maintenance of accounts by registered persons
(1) Every registered person shall keep and maintain, in addition to the particulars mentioned in sub-section (1) of section 35, a true and correct account of the goods or services imported or exported or of supplies attracting payment of tax on reverse charge along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.
(2)The account or records specified in sub-rule (1) shall be maintained separately for each activity including manufacturing, trading and provision of services, etc.
(3) Every registered person, other than a person paying tax under section 10, shall maintain accounts of stock in respect of each commodity received and supplied by him, and such account shall contain particulars of the opening b

= = = = = = = =

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

= = = = = = = =

to whom he has supplied the goods or services;
(c) the complete addresses of the premises where the goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.
(7) If any taxable goods are found to be stored at any place(s) other than those declared under sub-rule(6) 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.
(8) Every registered person shall keep the books of account at the principal place of business and at every related place(s) of business mentioned in his certificate of registration and such books of account shall include any electronic form of data stored on any electronic device.
(9) Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries shall be scored out under attestation and thereafter correct entry shall be reco

= = = = = = = =

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

= = = = = = = =

) of goods or services supplied on behalf of every principal;
(d) details of accounts furnished to every principal; and
(e) tax paid on receipts or on supply of goods or services effected on behalf of every principal.
(13) 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.
(14) 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.
(15) Every registered person executing works contract shall keep separate accounts for each works contract showing –
(a) the names and addresses of the persons on whose behalf the works contract is executed;
(b) description, value and quantity(wherever applicable) of go

= = = = = = = =

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

= = = = = = = =

for delivery or dispatch thereof to a recipient on behalf of any registered person shall maintain true and correct records in respect of such goods handled by him on behalf of the such registered person and shall produce the details thereof as and when required by the proper officer.
(19) Every registered person shall, on demand, produce the books of accounts which he is required to maintain under any law in force.
2. Generation and maintenance of electronic records
(1) Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within reasonable period of time.
(2) The registered person maintaining electronic records shall produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format.
(3) The registered person shall also provide, on demand, an account of the a

= = = = = = = =

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

= = = = = = = =

Every person who is enrolled under sub-rule (1) shall, where required, amend the details furnished in FORM GST ENR-01 electronically on the Common Portal either directly or through a Facilitation Centre notified by the Commissioner.
(4) Subject to the provisions of rule 1, any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him and for each of his branches.
(5) Subject to the provisions of rule 1, every owner or operator of a warehouse or godown shall maintain books of accounts, with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods.
(6) The owner or the operator of the godown shall store the goods in such manner that they can be identified item wise and owner wise and shall facilitate any physical verification or inspection by the proper officer on demand.
News – Press

= = = = = = = =

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

= = = = = = = =

GOODS AND SERVICE TAX PRACTITIONERS
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 19-4-2017

Similar to that of income tax act and indirect taxes acts, the CGST Act, 2017 provides for the authorization of an eligible person to act as GST practitioners.
Rule 24 of Returns (revised) Rules provides the provisions relating to a goods and service tax practitioner.
Eligibility
Rule 24 (1) gives the eligibility conditions for a GST practitioner which are detailed as below-
* he is a citizen of India;
* he is a person of sound mind;
* he is not adjudicated as insolvent;
* he has not been convicted by a competent court for an offence with imprisonment not less than two years
and satisfies of the following conditions-
* that he is a retired officer of the Commercial Tax Department of any State Government or of the Central Board of Excise and Customs, Department of Revenue, Government of India, who, during his service under the Government, had w

= = = = = = = =

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

= = = = = = = =

dia; or
* final examination of the Institute of Company Secretaries of India.
Procedure for enrolment
The following is the procedure for enrolment as a GST practitioner-
* A person who is eligible to act as GST practitioner may make an application in Form GST PCT – 1 to the officer authorized in this behalf for enrolment of GST practitioner;
* On receipt of the application, the authorized officer shall, after making such enquiry as he considers necessary, either enroll the applicant as a GST practitioner and issue a certificate to that effect in Form GST PCT – 2 or reject his application where it is found that the applicant is not qualified to be enrolled as a GST practitioner.
Validity of certificate
The enrolment made shall be valid until it is cancelled.
Disqualification
If any GST practitioner is found guilty of misconduct in connection with any proceedings under the Act, the authorized officer may, by order, in Form GST PCT direct that he shall henceforth be disqualifi

= = = = = = = =

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

= = = = = = = =

tered person may, at his option, authorize a GST practitioner on the Common Portal in Form GST PCT – 6 or at any time, withdraw such authorization in Form GST PCT – 7 and the GST practitioner so authorized shall be allowed to undertake such tasks as indicated in Form GST PCT – 6 during the period of authorization.
Where a statement required to be furnished by a registered person has been furnished by the GST practitioner authorized by him, a confirmation shall be sought from the registered person over email or SMS. The statement furnished by the GST practitioner shall be made available to the registered person on the Common Portal. Where the taxable person fails to respond to the request for confirmation till the last date of furnishing such statement, it shall be deemed that he has confirmed the statements furnished by the GST practitioner.
A registered person opting to furnish his return through a GST practitioner shall give his consent in Form GST PCT – 6 to any GST practitioner t

= = = = = = = =

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

= = = = = = = =

ard and inward supplies;
* furnish monthly, quarterly, annual or final return;
* make deposit for credit into the electronic cash ledger;
* file a claim for refund; and
* file an application for amendment or cancellation of a registration.
The GST practitioner shall prepare the statements with due diligence and affix his digital signature on the statements prepared by him or electronically verify using his credentials. For this purpose he has to get digital signature.
Conditions for purposes of appearance
Rule 25 provides that no person shall be eligible to attend before any authority, as a GST practitioner, in connection with any proceedings under the Act on behalf of any registered person or an un-registered person unless his name has been entered in the list maintained in Common Portal.
Reply By KASTURI SETHI as =
Sir,. Very informative and educative article. Thanks for enrichment.
Dated: 19-4-2017
Reply By Ganeshan Kalyani as =
Everything is transparent under GST

= = = = = = = =

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

= = = = = = = =

e summary statement given by the client and the annual return has variances. At the time it was learnt that consultant had committed mistake in filling up the form. (I assume, consultant's staff may have filled up the form). The consultant agreed to the mistake and filed corrigendum with the assessing officer. And the case went ahead for assessment.
In the above situation, the hardship which the client had faced in initial assessment hearing is because of the mistake committed by the consultant.
Only in such situation where client has given proper data but the forms were not filled up the consultant should be bestowed with some responsibility. otherwise, whatever data given by client and as it is uploaded by consultant, the primary responsibility is with the client, i agree.
Dated: 19-4-2017
Reply By Ganeshan Kalyani as =
Keeping these concern into mind the authority may have drafted the GST provision which requires the assesse to view/confirm the data uploaded by GST practi

= = = = = = = =

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

= = = = = = = =

4-2017
Reply By KASTURI SETHI as =
Sh.Rakesh Chitkara Ji,. Dear Sir,. These are so-called freebies practised by every department of Govt. Govt. Calls it surcharge actually it is imposable penalty. Penalty will be imposed only if payment is late. So thses freebies are an eye wash. It tantamounts to 'sale' . First increase the price and thereafter give the discount to the buyer. Thus shopkeepers/dealers befool the public. It is a fact. However, I agree with you it can click. But my e-filing return charges are already equal to freebies. I do consultancy with an aim to remain busy and update my knowledge. I give free consultancy on phone to everybody but if advice is to be given in writing then I charge reasonable fee because too much labour is involved. Any your idea is good and worth implementation. Thanks & Regards.
Dated: 20-4-2017
Reply By Saurabh Rairikar as =
Respected all,
First and foremost, Mr. M. Govindrajan has to be congratulated for his tireless effort in enlig

= = = = = = = =

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

= = = = = = = =