Goods and Services Tax

INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-1)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 19-4-2017

The Central Goods and Services Tax Act, 2017 has been enacted to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. This series of Articles shall analyze the provisions of Central Goods and Services Tax Act, 2017, which has been enacted on 12 April, 2017.
Objects of CGST Law
Presently, the Central Government levies tax on, manufacture of certain goods in the form of Central Excise duty, provision of certain services in the form of service tax, inter-State sale of goods in the form of Central Sales tax. Similarly, the State Governments levy tax on and on retail sales in the form of value added tax, entry of goods in the State in the form of entry tax, luxury tax and purchase tax, etc. Accordingly, t

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a single tax called the goods and services tax which will be levied on supply of goods or services or both at each stage of supply chain starting from manufacture or import and till the last retail level. So, any tax that is presently being levied by the Central Government or the State Governments on the supply of goods or services is going to be converged in goods and services tax which is proposed to be a dual levy where the Central Government will levy and collect tax in the form of central goods and services tax and the State Government will levy and collect tax in the form of state goods and services tax on intra-State supply of goods or services or both.
Need for GST Law
In view of the above, it has become necessary to have a Central legislation, namely the Central Goods and Services Tax Act, 2017. The proposed legislation will confer power upon the Central Government for levying goods and services tax on the supply of goods or services or both which takes place within a State.

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and Services Tax Council (the Council);
* to broad base the input tax credit by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business;
* to impose obligation on electronic commerce operators to collect tax at source, at such rate not exceeding one per cent. of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals;
* to provide for self-assessment of the taxes payable by the registered person;
* to provide for conduct of audit of registered persons in order to verify compliance with the provisions of the Act;
* to provide for recovery of arrears of tax using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person;
* to provide for powers of inspection, search, seizure and arrest to the officers;
* to establish the Goods and Services Tax Appellate Tribunal by th

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ven if made without consideration
Schedule II.
Activities to be treated as supply of goods or supply of services
Schedule III.
Activities or transactions which shall be treated neither as a supply of goods nor a supply of services
Origin and Commencement (Section 1)
* CGST Act will extend to whole of India excluding the states of Jammu and Kashmir.
* Jammu and Kashmir will need to approve levy of GST in its State assembly, on account of its special powers on taxation under article 370 of the Constitution. Once this is done, GST shall be introduced in the State.
* The CGST Act shall come into force from a date which will be notified by the Central Government in Official Gazette, i.e. from the appointed date.
* Different provisions may be made applicable from different dates as may be notified.
(To be continued……)
Reply By Ganeshan Kalyani as =
Sir, nice article. Sir, it is mentioned that CGST provision is not applicable in Jammu & Kashmir. But it seems that SGST & I

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filling of tax return preparer form
Query (Issue) Started By: – Archana Anand Dated:- 18-4-2017 Last Reply Date:- 18-4-2017 Goods and Services Tax – GST
Got 5 Replies
GST
my name is ARCHANA ANAND.
I have completed my M.com. I want to know whether I am eligible to fill the tax return preparer form ?
if yes, then how …
thank you.
Reply By Ganeshan Kalyani:
The Reply:
As per Section 43 of draft Model GST law provides for Tax Return Preparers
(1) The appropriate Government may

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ELECTRONIC WAY BILL – Transportation of goods under GST regime
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 18-4-2017

Draft Rule
Recently two draft rules relating to GST have been released for the comments of the stakeholders viz., 'Electronic way bill' and 'Assessment and Audit'. The draft 'Electronic Way bill' ('Bill' for short) contains six rules dealing with the generation of electronic way bill and related procedures.
Generation of electronic way bill
Rule 1 provides fixes the threshold limit for causing the generation of electronic way bill. The said Rule provides that every registered person who causes movement of goods of consignment value exceeding ₹ 50,000/- in relation to supply or for reasons other than supply or due to inward supply from an unregistered person, shall, before the commencement of the movement, furnishing information relating to the goods consigned. The information shall be furnished in Part A of Form GST INS –

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.
Voluntary generation
The electronic way bill may be generated by the registered person or the transporter even the threshold limit is below ₹ 50,000/-.
Generation of electronic way bill by an unregistered person
Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the electronic way bill in Form GST INS – 01 on the common portal in the manner prescribed. Where the goods are supplied by an unregistered supplier to a recipient, who is also registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.
Electronic way bill Number
Rule 1(2) provides that upon generation of the electronic way bill on the common portal, a unique electronic way bill number (EBN) shall be made available to-
* the supplier;
* the recipient; and
* the transporter
on the common portal.
T

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The transporter shall also generate a consolidated electronic way bill in Form GST INS – 02 on the common portal prior to the movement of the goods.
Furnishing of information
Rule 1(5) provides that the information furnished in Part of Form GST INS – 01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing the details in Form GSTR – 1( Details of outward supplies of taxable goods and/or services effected). When information has been furnished by an unregistered supplier in Form GST INS – 01, he shall be informed electronically, if the mobile number or the e-mail is available.
Cancellation of electronic way bill
Rule 1(6) provides that where the electronic way bill has been generated but goods are either not being transported or not being transported as per the details furnished in the electronic way bill, the electronic way bill may be cancelled electronically on the common portal, within 24 hours of generation of the electr

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de available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the electronic way bill. If he does not communicate his acceptance within 72 hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.
Validity of electronic way bill
Rule 1(9) provides that the electronic way bill generated under this rule or SGST shall be valid in the State. The facility of generation and cancellation of electronic way bill may also be made available through SMS.
Documents
Rule 2 provides for the documents and devices to be carried by a person in charge of a conveyance.
The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan and a copy of the electronic way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on the conveyance in such manner as notified by th

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nveyance to carry the following documents instead of the electronic way bill-
* tax invoice or bill or supply or bill of entry; or
* a delivery challan, where the goods are transported other than by way of supply;
Verification of documents and conveyances
Rule 3 provides that the Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the electronic way bill number in physical form for all inter-State and intra-State movement of goods.
The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the electronic way bill has been mapped with RFID.
Physical verification of conveyances shall be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in his behalf. On receipt of specific information of evasion of

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SETTLEMENT OF CASES IN GST
Query (Issue) Started By: – MARIAPPAN GOVINDARAJAN Dated:- 17-4-2017 Last Reply Date:- 17-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Why there is no pr

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INELIGIBLE INPUT TAX CREDIT UNDER GST REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 17-4-2017

Section 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available-
(a) motor vehicles and other conveyances except when they are used-
(i) for making the following taxable supplies, namely-
(A) further supply of such vehicles or conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an

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chinery) on his own account including such goods or services or both are used in course of furtherance of business;
(e) goods or services or both on which tax has been paid under Section 10 (Composition scheme);
(f) goods or services or both received by a non resident taxable person except on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
(i) any tax paid in accordance with the provisions of Section 74, 129 and 130-
* Section 74 provides for the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of fact;
* Section 129 deals with the detention, seizure and release of goods and conveyances in transit and the tax paid in this procedure;
* Section 130 deals with the confiscation of goods or conveyances and levy of penalty

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des that input tax credit shall not be available for certain categories. Some of the provisions of Rule 2(l) of CENVAT Credit Rules, 2004 are incorporated in Section 17(5) of the CGST Act, 2017.
Rule 2(l) of CENVAT Credit Rules, 2004 defines the term 'input service'. This term excludes certain services that means that such services are not eligible to take and utilize CENVAT credit which are as below-
* service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (specified services) in so far as they are used for –
* construction or execution of works contract of a building or a civil structure or a part thereof;
* laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or
[Section 17(5) (c) of CGST Act provides that the works contract services when supplied for construction of an immovable property,

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hen such services are used primarily for personal use or consumption of any employee.
* [Outdoor catering, beauty treatment, health services, cosmetic and plastic surgery are declared as ineligible input tax credit vide Section No. 17(5)(b) (i).Howeverwhere an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply.The particular category is to be prescribed by the Government.
* Membership of a club, health and fitness centre, life insurance services are not eligible in GST regime also vide Section 17(5)(b)(ii);
* Travel benefits extended to employees on vacation such as Leave or Home Travel Concession, services are also made ineligible for input tax credit vide Section 17(5)(b)(iv);
* Life insurance, health insurance is also made ineligible for input tax credit.However exceptions are there in t

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components, spares and accessories of the goods specified at (i) and (ii);
(iv) moulds and dies, jigs and fixtures;
(v) refractories and refractory materials;
(vi) tubes and pipes and fittings thereof;
(vii) storage tank and
(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis, but including dumpers and tippers
used-
(1) in the factory of the manufacturer of the final products; or
(1A) outside the factory of the manufacturer of the final products for generation of electricity or for pumping of water for captive use within the factory; or
(2) for providing output service;
(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for-
(i) providing an output service of renting of such motor vehicle; or
(ii) transportation of inputs and capital goods used for providing an output service; or
(iii) providing an output service of

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expect that litigation may be less since the definition is very clear.
Input
Rule 2(k) of CENVAT credit defines the term 'input' as-
(i) all goods used in the factory by the manufacturer of the final product; or
(ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or
(iii) all goods used for generation of electricity or steam or pumping of water for captive use; or
(iv) all goods used for providing any output service; or;
(v) all capital goods which have a value up to ten thousand rupees per piece,
but excludes-
(A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol;
(B) any goods used for –
(a) construction or execution of works contract of a building or a civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of capital goods,
except for

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tended to be used by a supplier in the course of furtherance of business. Thus this definition on 'inputs' removes the restrictions and hindrances put forth in the definition of 'input' in Rule 2(k) of CENVAT Credit Rules, 2004 and litigation will be very much reduced.
Conclusion
The definition of the term 'capital goods', 'inputs' and 'input services' is clear without giving place for interpretation as in the case of CENVAT Credit Rules. The only condition to observe is that the goods or services are used or intended to be used for the furtherance of business. Even though some categories mentioned in Section 17(5) (a), (b), (c) and (d) are not eligible to take input tax credit but if they are used for furtherance of business or some activities. The taking of input tax credit in GST regime is having no complex when comparing the CENVAT Credit Rule regime.
Reply By Sanketh Meri as =
Dear Sir,
The major issue under GST on capital goods definition is majorly pertaining to the word &

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and machinery in clause c and plant or machinery in clause d.
Whether it is clear now that input tax credit of construction material like steel and cement used for construction of plant in the course or furtherance of business is available to the assesse.
Whether input tax credit of any type of construction work (service) and material used for repairing ( not capitalized) of plant in the course or furtherance of business is available to the assesse.
Sir, you are highly learned person in this regard and hope to receive the guidance.
Thanks
Jaiprakash Ruia
Dated: 18-4-2017
Reply By chintan shah as =
sir i manufacturer chocolates and companies buy it from me for sales promotion as gifting. can the company buying the chocolate take input credit for their purchase of chocolates?
Dated: 23-6-2017
Reply By Pradeep Dadhich as =
Sir,
My Client is Constructing a Hotel building, whether we will get input tax credit of material used in constructing the Hotel Building like Cement,

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M/s. M.W. Mines Private Limited Versus Union Of India & Anr.
GST
2017 (4) TMI 1599 – RAJASTHAN HIGH COURT – TMI
RAJASTHAN HIGH COURT – HC
Dated:- 17-4-2017
D.B. Civil Writ Petition No. 4162/2017
GST
HON'BLE MR. JUSTICE GOVIND MATHUR AND HON'BLE MR. JUSTICE VINIT KUMAR MATHUR
For the Petitioner : Mr. BM Bohra
For the Respondent : None present
ORDER
Issue notice as to why this petition for writ be not accepted, as prayed. Issue notice of the stay application also.

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CBEC sanctions 1 cr to each zone for GST outreach
GST
Dated:- 15-4-2017

New Delhi, Apr 15 (PTI) Racing against time for GST rollout, Central Board of Excise and Customs (CBEC) chief Vanaja N Sarna has sanctioned ₹ 1 crore to each of 23 zones to conduct an outreach programme about the new tax regime.
Sarna asked officials of each zone to carry out the outreach at the local level to explain the new structure as also its benefits, registration and compliance.
"To implement this, zonal chief commissioners have now been requested to utilise an amount of ₹ 1 crore out of the funds under the 'O.E. General' head for this purpose," she wrote in her weekly newsletter.
The funds, she said, should be used

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l goods and services into five tax slabs of 5, 12, 18 an 28 per cent is in progress.
"At this stage, it is of paramount importance that we have an effective outreach to all the stakeholders to inform them of the salient features and benefits of GST," she said.
In the previous newsletter, she had stated that as part of the outreach programme, 24 print advertisements had been taken out in almost 200 different newspapers and outdoor GST campaign in major cities being undertaken using mediums like hoardings, rail train panels, bus queue shelters, bridge panels and billboards.
Special GST awareness campaign has been displayed through 12 Air India aircraft and TV advertisements, and radio jingles are being run on major channels.
Als

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Special Audit
Rule 5
Bill
ASSESSMENT AND AUDIT
GST – Assessment And Audit – Draft Rules 13-4-2017
5. Special Audit
(1) Where special audit is required to be conducted in accordance with the provisions of section 66, the officer referred to in the said section shall issue a direction in FORM GST ADT-03 to the registered person to get his records audited by a chartered accountant or a cost accountant specified in the said direction.
(2) On conclusion of special audit, the regist

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Audit
Rule 4
Bill
ASSESSMENT AND AUDIT
GST – Assessment And Draft Rules 13-4-2017
4. Audit
(1) The period of audit to be conducted under sub-section (1) of section 65 shall be a financial year or multiples thereof.
(2) Where it is decided to undertake the audit of a registered person in accordance with the provisions of section 65, the proper officer shall issue a notice in FORM GST ADT-01 in accordance with the provisions of sub-section (3) of the said section.
(3) The proper officer authorised to conduct audit of the records and books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are

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Assessment in certain cases
Rule 3
Bill
ASSESSMENT AND AUDIT
GST – Assessment And Audit – Draft Rules 13-4-2017
3. Assessment in certain cases.
(1) The order of assessment made under sub-section (1) of section 62 shall be issued in FORM GST ASMT-13.
(2) The proper officer shall issue a notice to a taxable person in accordance with the provisions of section 63 in FORM GST ASMT-14 containing the grounds on which the assessment is proposed to be made on best judgment basis and a

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Scrutiny of returns
Rule 2
Bill
ASSESSMENT AND AUDIT
GST – Assessment And Audit – Draft Rules 13-4-2017
2. Scrutiny of returns
(1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepanc

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Provisional Assessment
Rule 1
Bill
ASSESSMENT AND AUDIT
GST – Assessment And Audit – Draft Rules 13-4-2017
CHAPTER
ASSESSMENT AND AUDIT
1. Provisional Assessment
(1) Every registered person requesting for payment of tax on a provisional basis in accordance with the provisions of sub-section (1) of section 60 shall furnish an application along with the documents in support of his request, electronically, in FORM GST ASMT-01 on the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
(2) The proper officer may, on receipt of the application under sub-rule (1), issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in suppo

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determined under sub rule (3):
Provided that a bond furnished to the proper officer under the Central/State Goods and Services Tax Act or Integrated Goods and Services Tax Act shall be deemed to be a bond furnished under the provisions of this Act and the rules made thereunder.
Explanation.- For the purposes of this rule, the term “amount” shall include the amount of integrated tax, central tax, State tax or Union territory tax and cess payable in respect of the transaction.
(5) The proper officer shall issue a notice in FORM GST ASMT-06, calling for information and records required for finalization of assessment under sub-section (3) of section 60 and shall issue a final assessment order, specifying the amount payable by the registered

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Facility for uploading information regarding detention of vehicle
Rule 5
Bill
e-Way Bill
GST – e-Way Bill – Draft Rules 13-4-2017
5. Facility for uploading information regarding deten

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Inspection and verification of goods
Rule 4
Bill
e-Way Bill
GST – e-Way Bill – Draft Rules 13-4-2017
4. Inspection and verification of goods
(1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS – 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS – 03 shall be recorded within three days of the inspection.
(2) Where the physical verification of goods being tr

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Verification of documents and conveyances
Rule 3
Bill
e-Way Bill
GST – e-Way Bill – Draft Rules 13-4-2017
3. Verification of documents and conveyances
(1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.
(2) The Commissioner shall get RFID readers installed at places where verifica

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Documents and devices to be carried by a person-in-charge of a conveyance
Rule 2
Bill
e-Way Bill
GST – e-Way Bill – Draft Rules 13-4-2017
2. Documents and devices to be carried by a person-in-charge of a conveyance
(1) The person in charge of a conveyance shall carry –
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance in such manner as may be notified by the Commissioner.
(2) A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST I

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Information to be furnished prior to commencement of movement of goods and generation of e-way bill
Rule 1
Bill
e-Way Bill
GST – e-Way Bill – Draft Rules 13-4-2017
Chapter –
Electronic Way Bill
1. Information to be furnished prior to commencement of movement of goods and generation of e-way bill
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees –
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal and
(a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common porta

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urposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.
(2) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
(3) Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport.
(4) Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS-02 shall be generate

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not being transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 3.
(7) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2):
Table
Sr. no.
Distance
Validity period
(1)
(2)
(3)
1.
Less than 100 km
One day
2.
100 km or more but less than 300km
Three days
3.
300 km or more but less than 500km
Five days
4.
500 km or more but less than 1000km
Ten days
5.
1000 km or more
Fifteen days
Provided that the Commissioner may, by notification, extend the

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CESTAT – CONTINUING?
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 15-4-2017

It is expected that the GST will come into effect from 01.07.2017. Section 109 to 116 of the Central Goods and Services Tax Bill, 2017 (passed by both Lok Sabha and Rajya Sabha and awaiting for the nod of the President of India) provide for the constitution of 'Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority and also provide the procedures for the functioning of the said Tribunal. The said Tribunal will hear appeals in respect of GST matters that will come into effect from 01.07.2017.
At present the appeals against the appellate authorities are made to CESTAT (Customs, Excise & Service Tax Appellate Tribunal). The Bill does not provide for the transfer of cases of CESTAT to the new Tribunal as done in the Companies Act, 2013 which transferred the pending cases before Company

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g cases relating to adjudications, refunds, rebates, drawback as well as export related schemes. It had increased the adjudicating powers of officials and also hiked the monetary threshold for filing cases.
The main question before us is whether 5 years time is enough for CESTAT to wipe all the appeal pending before it. The pending cases as on the appointed day i.e., 01.07.2017 may be finalized within 5 years time by the CESTAT.
The provisions of service tax and excise duty will be applicable till 30.06.2017 i.e., the previous day to the effective date from which GST will come into live.
Section 73(1) of Finance Act, 1994 provides that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the Central Excise Officer may, within thirty months from the relevant date, serve notice on the person chargeable with the service tax which has not been levied or paid or which has been short-levied or short-paid or the person to whom s

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under with intent to evade payment of duty, the Central Excise Officer shall, within 12[two years] from the relevant date, serve notice on the person chargeable with the duty which has not been so levied or paid or which has been so short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice.
Section 11A (4) of the Central Excise Act, 1944 provides that where any duty of excise has not been levied or paid or has been short levied or short-paid or erroneously refunded, by the reason of-
(a) fraud; or
(b) collusion; or
(c) any willful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Act or of the rules made there under with intent to evade payment of duty, by any person chargeable with the duty, the Central Excise Officer shall, within five years from the relevant date, serve notice on such person requiring him to show cause why

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y are going to be subsumed in GST but not customs duty. The appeals against the Appellate authorities are to be filed before CESTAT for customs matters. Unless otherwise a separate Tribunal is established for customs matters CESTAT is to be continued for ever but the number of benches may be reduced.
The Department of Revenue will take a call on the exact working of CESTAT under GST. Officials note that it may be difficult to start out with GST on an absolutely clear slate as many cases are pending with tribunals and higher courts but efforts are on to expedite as many cases as possible.
Transitional provisions regarding to CENVAT credit
In respect of the litigations relating to CENVAT credit transitional provisions are incorporated the in the CGST Bill, 2017.
Section 142(6) (a) provides that every proceeding of appeal, review or reference relating to CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with

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any output duty or tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of existing law. If any amount becomes recoverable as result of such appeal, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under the Act.
If any amount found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of Section 11B(2) of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
Section 142(8) (a) provides that where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amo

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Draft GST Rules – Assessment and Audit
GST
Dated:- 14-4-2017

CHAPTER
ASSESSMENT AND AUDIT
1. Provisional Assessment
(1) Every registered person requesting for payment of tax on a provisional basis in accordance with the provisions of sub-section (1) of section 60 shall furnish an application in FORM GST ASMT-01, along with the documents in support of his request, electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
(2) The proper officer may, on receipt of the application under sub-rule (1), issue a notice in FORM GST ASMT-02 requiring the registered person to appear in person or furnish additional information or documents in support of his request and the applicant shall file a reply to the notice in FORM GST ASMT – 03.
(3) The proper officer shall issue an order in FORM GST ASMT-04, either rejecting the application, stating the grounds for such rejection or allowing payment of tax on provisional

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in FORM GST ASMT-06, calling for information and records required for finalization of assessment under sub-section (3) of section 60 and shall issue a final assessment order, specifying the amount payable by the registered person or the amount refundable, if any, in FORM GST ASMT-07.
(6) The applicant may file an application in FORM GST ASMT- 08 for release of security furnished under sub-rule (4) after issue of order under sub-rule (5).
(7) The proper officer shall release the security furnished under sub-rule (4), after ensuring that the applicant has paid the amount specified in sub-rule (5) and issue an order in FORM GST ASMT-09 within a period of seven working days from the date of receipt of the application under sub-rule (6).
2. Scrutiny of returns
(1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, a

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section 62 shall be issued in FORM GST ASMT-13.
(2) The proper officer shall issue a notice to an unregistered taxable person in accordance with the provisions of section 63 in FORM GST ASMT-14 containing the grounds on which the assessment is proposed to be made on best judgment basis and after allowing a time of fifteen days to such person to furnish his reply, if any, pass an order in FORM GST ASMT-15.
(3) The order of summary assessment under sub-section (1) of section 64 shall be issued in FORM GST ASMT-16.
(4) The person referred to in sub-section (2) of section 64 may file an application for withdrawal of the summary assessment order in FORM GST ASMT-17.
(5) The order of withdrawal or, as the case may be, rejection of the application under sub-section (2) of section 64 shall be issued in FORM GST ASMT-18.
4. Audit
(1) The period of audit to be conducted under sub-section (1) of section 65 shall be a financial year or multiples thereof.
(2) Where it is decided to under

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Draft GST Rules – e-Way Bill
GST
Dated:- 14-4-2017

Chapter –
Electronic Way Bill
1. Information to be furnished prior to commencement of movement of goods and generation of e-way bill
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees –
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal and
(a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01; or
(b) where the e-way bill is not generated under cl

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the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.
(2) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
(3) Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport.
(4) Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS-02 shall be generated by him on the common portal prior to the movement of goods:
Provided that where the consignor has not generated FO

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n the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 3.
(7) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2):
Table
Sr. no.
Distance
Validity period
(1)
(2)
(3)
1.
Less than 100 km
One day
2.
100 km or more but less than 300km
Three days
3.
300 km or more but less than 500km
Five days
4.
500 km or more but less than 1000km
Ten days
5.
1000 km or more
Fifteen days
Provided that the Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein.
Explanation.- For the purp

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nce
(1) The person in charge of a conveyance shall carry –
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance in such manner as may be notified by the Commissioner.
(2) A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1, and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.
(3) Where the registered person uploads the invoice under sub-rule (1), the information in Part A of FORM GST INS-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
(4) The Commissioner may, by notification, require a class of transporter

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hicles shall be done through such RFID readers where the e-way bill has been mapped with RFID.
(3) Physical verification of conveyances shall be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in this behalf:
Provided that on receipt of specific information of evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorized by him in this behalf.
4. Inspection and verification of goods
(1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS – 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS – 03 shall be recorded within three days of the inspection.
(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any o

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Compositionscheme under GST
Query (Issue) Started By: – Aitha RajyaLakshmi Dated:- 14-4-2017 Last Reply Date:- 5-5-2017 Goods and Services Tax – GST
Got 6 Replies
GST
Sir,
Whether the rates prescribed (0.5%, 1%, 2.5%) for the Assesses availing Composition scheme is the final rate taxable or this is only the rates in CGST Bill and the tax rate for levy is to be doubled (CGST+SGST) i.e., 1%, 2%, 5%.
Reply By Himansu Sha:
The Reply:
It is the final rate.
Reply By Himansu Sha:
The Reply:
Others experts may also give their views
Reply By Ganeshan Kalyani:
The Reply:
The rates are including both CGST and SGST.
Reply By Aitha RajyaLakshmi:
The Reply:
Notwithstanding anything to the contrary contained in this Act but subject

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y be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council.
Reply By MADAN RAHEJA:
The Reply:
Provisions contained in CGST Act, 2017 relate only to CGST. As regards SGST, Acts that would be passed by different states would make provisions of CGST Act applicable mutatis mutandis. For example UTGST Act, which is applicable to Union Territories (as good as State), Section 21 states that provisions of CGST Act so far they relate to Composition shall be mutatis mutandis applicable meaning thereby that rates mentioned in CGST Act shall be applicable. In my view composition rates for CGST and SGST wou

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Tax paid on Goods lying with Agent under section 192
Query (Issue) Started By: – RAM SHARMA Dated:- 14-4-2017 Last Reply Date:- 23-5-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Experts,
if any goods lying at the premises of the agent on the appointed day , agent shall be entitled to take credit of the same subject to the following conditions :
*
Agent is Registered taxable Person under the act.
*
Both the agent and principal declare the detail of such goods before

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Composition Tax under CGST Bill,2017
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 14-4-2017

CGST Bill,2017 under Section -10 provides that small taxpayer can opt for the scheme of composition tax instead of opting for paying tax under the regular supply of goods. Here this should be noted that this option is not available to registered person who is providing only service except supply of service mentioned in clause b of paragraph 6 of Schedule-II . By opting the composition tax scheme , one can save himself from all the hassle of exhaustive provision of GST Law. Before we switch over to related provision of this section, it is important to understand the definition of Aggregate Turnover.
As per Section 2(6) , “Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by person on reverse charge basis), exempt supplies , export of goods or services or both and interstate supplies

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human consumption) where supply of service is for cash , deferred payment or other valuable consideration.]
* Half percent of turnover in State or UT in case of other supplies.
The above limit of ₹ 50 lacs may be increased by government by way of notification by such higher amount but not exceeding ₹ 1 crore.
Composition scheme can not be allowed to the following taxable person;
* Not engaged in the supply of services other than mentioned in clause b of paragraph 6 of Schedule-II .
* Not engaged in supply of goods those are not leviable to tax.
* Not engaged in interstate outward supply of goods.
* Not engaged in supply of any goods through electronic commerce operator who is required to collect tax at source u/s 52.
* Not engaged in the manufacturer of such goods notified by the council.
This provision will be allowed to RP only when all registered taxable person under the same PAN opt to follow the same scheme.
Permission granted to RP shall be withdra

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ply of goods under reverse charge in Form GST CMP-03.
Intimation under this rule in state shall be deemed to be intimation to all other State or UT of business under the same PAN.
Restriction and condition for composition levy
Person exercising the option u/s 10 will need to follow the following restriction :
* Neither a casual trader or non resident can opt
* Goods held in stock on appointed day should not have been purchased from inter state trade or imported outside India, transfer from his branch outside the State, where the option is exercised under sub rule 1 of Rule 1.
* Goods held in stock have not been purchased from unregistered person and where purchased , he has paid the tax u/s 9[4].
* He shall pay tax under sub section 3 & 4 of section 9 on inward supply of goods or services from unregistered person.
* On the top of the bill supply he will mentioned ” composition taxable person”
* On every notice or signboard , he shall mention ” composition taxable person

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Returns rules dt.31.3.2017
Query (Issue) Started By: – Parineeta Singh Dated:- 13-4-2017 Last Reply Date:- 16-4-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Hello All
I have a query regarding return rules,i found it difficult to relate the section mentioned in the rules with the section given in GST Act..for eg.
Rule 1,talking about outward supplies but instead of mentioning the sec. 32,its refering to sec 38.
Kindly explain the fact.
Thanku
Reply By KASTURI SETHI:
The R

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Prez gives assent to four supporting legislations on GST
GST
Dated:- 13-4-2017

New Delhi, Apr 13 (PTI) – President Pranab Mukherjee has given assent to four key legislations on Goods and Services Tax (GST), paving the way for the roll out of one-nation-one- tax regime from July 1.
The legislations were The Central GST Act, 2017, The Integrated GST Act, 2017, The GST (Compensation to States) Act, 2017, and The Union Territory GST Act, 2017, officials said today.
These bills were passed in Rajya Sabha on April 6 and by Lok Sabha on March 29.
The GST, the biggest taxation reform since Independence, will subsume central excise, service tax, Value Added Tax (VAT) and other local levies to create an uniform market.
The Central G

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