Goods and Services Tax

Goods and Service Tax – Improving Ease of Doing Business
By: – CSSANJAY MALHOTRA
Goods and Services Tax – GST
Dated:- 5-9-2016

Goods and Service Tax – “Improving Ease of Doing Business”
Long awaited Constitutional (122nd) Amendment Bill has been passed by Rajya Sabha on August 3, 2016 and by Lok Sabha on August 8, 2016. The same has been ratified by more than 50% of the states in India as on Sep 04, 2016 and will be forwarded to President for his assent for amendment in constitution. GST Council will be formed accordingly to finalise the GST rates. GST Council is to be headed by Union Finance Minister and consists of State Finance Minister or their representatives. GST Bill will be introduced in the winter session of Parliament in Nov-Dec'2016 and after the passage of same, will be sent to President for his approval and subsequently will become GST Act.
Govt. of India is working very closely with all the stakeholders i.e. States Govt's, Industry, Council, and Professi

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n Transaction Costs, Reduction in Compliance Costs, Uniform Tax Structure i.e. One Tax Rate across nation, Digital Environment moving to paperless regime, etc…..
Cascading impact of taxes adds to the business inefficiency and Goods and Service Tax will do away with the same as the CGST/SGST/IGST would be calculated on common base.
GST Glance : Worldwide
Country
Year
Dual Structure
Single Structure
GST Rate
France
1954
√
20%
South Korea
1977
√
10%
New Zealand
1986
√
15%
Japan
1989
√
5%
Canada
1991
√
5%
Singapore
1994
√
7%
China
1994
√
17%
Australia
2000
√
10%
European Union
2006
√
15%
Malaysia
2015
√
6%
Levy of Taxes under GST
Central Indirect Taxes i.e. Central Excise Duty, Countervailing Duty on Imports, Special Additional Duty, Service Tax, Surcharges & Cesses, will be subsumed into CGST (Central Goods and Service Tax).
State Taxes i.e. VAT, Entry Tax, Surcharges, Taxes on

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oods. Reduction in tax cost will be ultimately passed on to the consumers.
Goods and Service Tax will take away the present set of exemptions which would give all the businesses level playing field in the competitive environment.
GST is going to be a major shift in moving to Digital environment as all the Tax Payments, CENVAT Ledgers, returns, Refunds will be processed online over internet. The same will also result in Reduction in Compliance cost as all the required will be available online similarly to Income Tax i.e. Form 26AS, Returns, Refunds…..
Impact of GST on Industry
Goods and Service Tax is not only the change in the Indirect Tax Structure but would be ” Business Transformation” as it would have impact on Accounting Systems, Supply Chain Systems, Information Technology Systems, Restructuring of Business Models for Direct Sale / Distributors sale / Warehouse transfer.
Warehouses are set up in various states to leverage out the benefits in terms of CST Cost, which would

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t in sourcing from inter-state to intra-state and vice-versa as CST (Central Sales Tax) would be done away with and Input Tax credit is eligible irrespective of Inter/Intra State Purchases.
Cost of Collection of Taxes for the Central / State Govt. will come down as the all the payments, returns, Input Tax Credit ledgers are maintained online over internet.
End of Tax Exemptions Era
Goods and Service Tax will have barely minimum goods and services under Tax Exemption and may cover only those which may pertain to Life saving drugs, agricultural produce…….
Area Based Exemptions will also put to an end in GST Regime and everyone will have level playing field in the market. This would also put an end and control over the tax leakages in the system thereby adding to the Growth in GDP. Tax compliances would increase leading to reduction in litigations. If exemptions continue, Govt. may bring in policy for levy of GST on supplies and may refund back tax collected or define % of refund

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ducts in GST regime would eventually lower down the cost of inputs for various products.
Added advantage in the GST is that even the wholesalers / distributors who are not eligible to avail the Input Tax Credit for Central Excise Duty would now be eligible under GST regime for Central Taxes such as CGST / IGST, which can be further set off against their output tax liability.
Registration under GST – (Section 19)
Separate Registration is required at present under Central (Excise, Service Tax) and State Acts (VAT, CST). In GST, single registration is required, which is common for both CGST/SGST. Registration No will consists of 15 digits, wherein first 2 digits represent State Code, next 10 digits represents PAN No. , next two Entity code of the Applicant and remaining left blank intentionally for future use.
Persons falling under Schedule III to Model GST Law are required to be registered under the GST Law. This includes Persons having Aggregate Turnover > ₹ 9 Lacs during F.Y

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hall be given Registration for 90 days which may be further extended to 90 days. (These persons does not have fixed place of business in the state where they undertake assignment for short duration of time).
Casual Taxable Person and Non-Resident Person shall have to deposit the estimated Tax Liability at the time of seeking Registration under GST.
Input Tax Credit (Section 16)
In the current tax structure, CENVAT Credit is linked to inputs, input services, capital goods used in or in relation to the manufacture of Taxable final products, whereas in case of GST, Input Tax Credit is admissible on any supply of goods and / or services which are used or intended to be used in the course or furtherance of business and includes tax payable under sub-section (3) of Section 7 i.e. Reverse charge.
Input Tax credit is admissible until and unless the goods / services are specifically exempted under the GST Rules / Act.
Input Tax Credit is to be availed within a period of 1 year from the dat

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n 16(9) of Model GST Law which includes mainly goods acquired in relation to construction of Immoveable property, goods under Composition levy, goods or services relating to food and beverages, outdoor catering, beauty treatment, life insurance, health insurance, travel benefits, leave / home travel concession, motor vehicles until they are into such business, goods and services consumed for personal consumption…..
Composition Levy of Tax-(Section 8)
Composition Levy of Tax shall be applicable in respect of registered person whose aggregate turnover in a financial year within the state does not exceed ₹ 50 Lacs. These persons are liable to pay Composition Levy on their turnover at the rate to be decided by the GST Council and the tax levy should not be reflected on the invoice. Furthermore, these persons are not eligible to avail any Input Tax credit against the Input/Input services / Capital Goods. Furthermore no Tax charged is to be shown on Invoice; rather the document to

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ve been made very simple and easy for an assessee to comply with. Refund is admissible under GST in the following situations:
* Excess Payment due to mistake.
* Refund of Carry forward of Input Tax Credit. (Due to Inverted Tax Structure)
* Export (Including Deemed Export).
* Refund on Year End Volume Discounts.
* Refund of Pre-Deposit in case of Appeal / Investigation.
* Refund for Tax Payment in respect of supplies to CSD canteens, Un Bodies, Para Military forces…
Refund is to be submitted online and the same shall be submitted within 2 years from the Relevant Date which is defined separately under the Act for each of category, wherever refund arises.
Refund can be withheld by the department if the taxable person has defaulted in furnishing of returns, defaulted in making of tax payment / interest / penalty which has not been by the Court / Appellate authorities.
Payment of Tax- (Section 35)
Tax payment can be made by Internet Banking/ Debit Cards / Credit Cards / RT

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ds in the books of account.
In case of continuous supply of goods where successive account statements / payments are involved, the time of supply shall be the expiry of period to which successive statement of accounts / payment relate.
In case tax is liable to be paid under Reverse charge, then earliest of date of receipt of goods or date on which payment is made or date of receipt of Invoice or date of debit in the books of accounts.
Liability to pay CSGT/SGST arises at the time of Supply of Services which shall be earliest of the following:
* Date on Issue of Invoice or Date of Receipt of Payment whichever is earlier in case the Invoice is issued within prescribed period.
* Date of completion of provision of service or Date of Receipt of Payment if invoice is not issued within prescribed period.
In case of continuous supply of service “where payment is ascertainable” from contract, the date on which payment is liable to be made OR “where payment is not ascertainable” each tim

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oods terminates for delivery to recipient.
* If the goods are delivered by supplier or any other person on direction of third person, then Place of Supply shall be the Location of such person.
* Where Goods are assembled at site, Location shall be the Place of Installation of such assembly.
* If the goods are supplied on board or conveyance i.e. vessel or aircraft, then place of supply shall be the location at which such goods are taken on board.
Place of Supply of Services (Section 6)
Wherever Services are rendered to Registered Person, then the Location of such person is considered as Place of supply of goods.
In case services are rendered to a person other than registered person, POS shall be the location of supplier but if the address of service recipient exists in the records of service provider, then the POS shall be the location of recipient, where the address on record exists.
Section 4 to 14 of the IGST Draft Law defines POPS for various services for the purpose of d

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e returned on or after the appointed day (No Tax payable)
* Supplementary Invoices, Debit Notes / Credit Notes can be issued for change in price and Tax to be paid as per GST Rates.
* Pending Refund Claims as on the date of Implementation of GST to be processed under earlier law.
* Claim of CENVAT to be disposed off as per Law existing prior to GST Regime.
* Where any semi-finished goods are removed for Job Work & returned on or after appointed day, No Tax shall be payable if Goods after processing are returned within period of 6 months.
* Where any Finished goods are removed for processing not amounts to manufacture, No Tax shall be payable if Goods after processing are returned within period of 6 months.
All the above stated factors in GST would go a long way in making India a “Digital India”, Uniform Market across Nation for Goods & Services, Reduction in Logistics Cost, Transaction Cost, Cost of Production besides increasing efficiencies in operational processes”
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Goods Vs. Services in GST: Concept and Open Issues
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 5-9-2016

Dear Professional Colleague,
Goods Vs. Services in GST: Concept and Open Issues
As Goods and Services Tax (“GST”) is going to be levied on supply of goods and/or services, meaning of 'goods' and 'services' would also play vital role in levy and chargeability of GST after the key term 'supply'. It has to be clearly identified as to whether the supply constitutes supply of goods or services for leviability of GST. Importance of the terms 'goods' and 'services' would become all the more important if rates of GST on goods and services are going to be different.
This article attempts to decipher the main terms namely 'goods' and 'services' in the light of provisions contained in Model GST Law, to provide conceptual clarity as regards the meaning of goods and services in GST along with highlighting the key issues therein.
Meaning of 'goods' in GST:
The term '

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Explanation: Services include intangible property and actionable claim but does not include money.”
Apparently, the term 'service' has been defined in the widest sense possible as any transaction which is not goods, shall be services except money.
Whether Immovable property is service:
As the definition of the term 'service' is wide enough to cover anything other than goods, this would mean that even any rights or usage of immovable property would also constitute services under GST.
Actionable claim is a service:
It may be noted here that unlike the definition of 'service' as given under Section 65B(44) of the Finance Act, 1994 (“the Finance Act”), which excludes 'transaction in money' and 'actionable claim' from the taxable net of Service tax, the proposed definition of 'service' under GST only states exclusion of money and specifically includes actionable claim.
Thus, actionable claims would be service and exigible to GST unlike the Finance Act, where the same has been specifi

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over insurance money;
* Claim for arrears of rent etc.
Clarity required on exclusion of 'money':
As the definition of service only states that 'money' is excluded from its ambit, the same needs to be revisited to avoid any confusion as exclusion of money alone does not convey real nature of exclusion.
Examples of transaction in money:
* The principal amount of deposits in or withdrawals from a bank account.
* Advancing or repayment of principal sum on loan to someone, etc.
Whether intangibles are goods or services?
It may be noted here that the definition of 'goods' given under Article 366(12) of the Constitution of India is defined in inclusive manner to provide that “goods includes all materials, commodities, and articles”. Further, as per proposed Article 366(26A) “services” means anything other than goods”. Thus, the definition of 'goods' and 'services' in Model GST Law are different from the definitions given in the Constitution.
Further, from the settings of Article

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(the definition of goods under maximum State VAT Acts excludes securities). Thus, if no exemption is provided to securities transaction while finalising the Model GST Law, this could prove to be an additional burden, which in turn would blemish the domestic investments in India, as sale of securities outside India would qualify as export and can take over as preferred choice for attracting investments.
At the same time, one may also infer that securities are one of the forms of transaction in money, which are neither goods nor services as per the definitions provided under Model GST Law.
With the definition of goods and services provided under the Model GST Law, placed on public domain on June 14, 2016, it would be important for the Industry to appropriately understand and categorise the different types of the supplies made by them to assess the impact on taxability. However, considering the fact that both these crucial terms have been defined in extensive manner, the corresponding

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Input Tax Credit
Query (Issue) Started By: – santosh phulse Dated:- 4-9-2016 Last Reply Date:- 5-9-2016 Goods and Services Tax – GST
Got 15 Replies
GST
"According to the existing provisions under the draft law, the buyer can claim input tax credit only if the seller or provider of the goods or services has paid the tax charged for such goods or services.This has put the onus of ensuring compliance with the customer or buyer of the goods and services."
-This particular clause in the draft GST law seems unfair to the business community and should be removed.
Reply By KASTURI SETHI:
The Reply:
Dear Sir,
This has been proposed to be enacted in GST in order to make the facility of cenvat credit fool proof. In the present Cenvat Credit Rules, earlier also onus was cast on the person who avails Cenvat Credit.
Reply By CS SANJAY MALHOTRA:
The Reply:
Dear Sh. Santosh ji,
Tax credit provisions are defined considering the Tax leakages and Revenue protection. If suppl

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s with TIN in his return and shows the tax that it he has paid, based on which the authority with the help of system does cross checking as to whether the TIN of purchaser is appearing in the details and allow the credit if appears. If there is any difference in the tax amount shown by the supplier with the credit amount claimed by the purchaser then the purchaser in order to claim set off has to get written confirmation from the supplier and produce the same before the authority to become eligible to claim the set off.
In GST, as well, the same system as that of VAT is proposed. An assessee shall get tax credit of those tax which he has paid on his purchases only when the supplier has paid the tax. This would be monitered through VAT Credit Ledger in GSTN.
An assessee might think that his primary motive is to carry out business and not to check whether his counter party has paid the tax collected or not. But if we think from the eyes of authority then we can understand that for tax

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s, the Delhi VAT Department had come with a unique feature in its VAT Laws to reconcile the 2A and 2B statements and in recent time, the DVAT Department has come with coding systems of items which shall be mentioned in the purchasers' and sellers' return and invoices to reconcile the correctness of transactions.
Even in earlier times the Central Excise Department to check the availed Modvat Credit and Modvat credit availed above ₹ 10000/- the details/xerox copies used to send the seller's jurisdictional Range Office for its authenticity.
This is not a new feature which has been incorporated in the GST Model Law. As rightly indicated by Mr. Ganeshan, by doing so, the interest of our Country in tax matter has been taken care of.
Reply By santosh phulse:
The Reply:
Respected Sir,
If a supplier has failed to furnish the return on time or pay tax on time, the government should penalise the supplier instead of the buyer. “This clause is especially harsh on small and m

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ike mention here that similar fear was there when TDS was made online, it is rare or few exceptions may be there, but substantially, there is no complaint that the deductor of TDS has not uploaded the TDS details of the deductee.
I do believe that, the fear of deficit of trust between the supplier and buyer must be eliminated and the environment of mutual trust and responsibility must be allowed to grow. As you know, because of few persons / business entities engaged in wrongdoing, all genuine persons / business entities are finding it difficult to do the business honestly.
Reply By KASTURI SETHI:
The Reply:
Dear Experts,
I have come across a Trade Notice issued by Central Excise Commissionerate, Chandigarh-I on the issue. It explains why responsibility is cast upon service receiver.. Copy is appended below:
A copy of Trade Notice No.10/12 dated 13-7-2012 issued by Chandigarh Commissionerate-I on the issue.
I do not know what is the present position of this trade notice.
Reply B

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ee requests the deductor to file revised tds return by rectify the error. In GST whether such requirement of issue of Form would be there or like the system of 26AS would be there is a question mark as of now. Sir, also TDS is quarterly conplaince whereas GST would be monthly conplaince. This also will demands time of the dealer.
Sir, change is certain. It gives problem in the beginning but the fruits would be sweet. Likewise the provisions as included in the draft law would yield good result in long run. Thanks.
Reply By Ganeshan Kalyani:
The Reply:
Sir, I believe each dealers in the chain of GST should be made aware of such problems when tax is not paid by one of the party in the chain of tax credit. Thanks.
Reply By santosh phulse:
The Reply:
Sir, this is little bit complicated. How can a buyer, who has 100s of suppliers, ensure that the each of the suppliers has paid the tax collected by them into the Govt treasury??? And whether they have accounted for each transaction (incl

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is aspect. Though there may arise teething troubles, yet GST will be successful through GSTN. Time will come when people will work from home through the System/internet. So much will be the importance of technology.
Reply By CS SANJAY MALHOTRA:
The Reply:
Dear Mr. Santosh ji,
Am in agreement with Sh. Kasturi ji. We have taken up this issue with the Board also to work out alternative so that the purpose of Govt may not be defeated. In connection with same, we were told that Govt wants us to be one of the stakeholder in ensuring compliance by taking up with our suppliers to pay tax timely, when we are reimbursing the same to them.
In sales tax, majority of states have matching concept and if balances does not reconcile, they call for Account Ledger to validate that all payments have been made by recipient of goods and accordingly allow credit.
Understand your concern which is common in Industry as resistance to change is always there. Proposal has been put across Board to review whe

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Commission and freight role in GST
Query (Issue) Started By: – RAM SHARMA Dated:- 2-9-2016 Last Reply Date:- 4-9-2016 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts,
We are manufacturer of exciasable goods and selling our goods through our various consignment agent in all over india against form F. We are providing 3% commission and freight to our consignment agent for selling our goods and availing service tax cenvat on such commission and freight up to the consignment agent warehouse. I would like to know your opinion in this regard after implementation of GST impact.
Thanks & Regard
Reply By CS SANJAY MALHOTRA:
The Reply:
All forms i.e. C/D/E-1/F will be done away with in GST regime and the tax has to be pai

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d in the Model GST Law.
There is possibility that the Model GST Bill shall undergo change/modifications. All have to wait till time a final law is enacted.. Thanks.
Reply By Ganeshan Kalyani:
The Reply:
Sir, IGST shall be payable by sending unit and the receiving unit shall be able to take credit by adjusting first against IGST payable followed by CGST and finally against SGST. The said sequence has been prescribed in the draft GST Law.Thanks
Reply By CA Surender Gupta:
The Reply:
The transactions between the principal and agent will be treated as separate would be chargeable to GST as per the proposed scheme.
GST paid by the principal will be available to consignment agent / dealer as ITC and so no on subsequent sale.
Therefore, i

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k transfer is immediate liquidity to Exchequer. Say, if A has stock transfer to his branch in another State and the receiving location may sell those goods in the same month or by two or three months time depend upon the market demand. Generally looking into the need of that location stock transfer is taken place. But practically may take that much time in selling the goods in receiving branch state. Thus only when the goods are locally sold the Exchequer are getting the revenue. So there is a time gap from the date when goods are stock transfer and the date when actual sale is taken place. To bridge a gap and to prepone the tax collection Govt has come up which such provision where even stock transfer is taxes. This would make the authorit

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GST Council- mini parliament for GST
By: – sandeep saini
Goods and Services Tax – GST
Dated:- 2-9-2016

After a much awaited time period, now its matter of time, when GST is going to be a reality in India. The seriousness of the Government to implement GST, clearly appears from the passage of 122nd Constitutional Amendment Bill (“Constitutional Amendment Bill”) by both the houses of parliament i.e. Rajya Sabha as well as Lok Sabha. On the other hand, the States are also equally eager to implement GST as early as possible, and after the passage of Constitutional Amendment Bill, States are ratifying the same by holding the special sessions of their State legislative assemblies, and till now Assam, Bihar, Jharkhand, Himachal Pradesh, Chattisgarh has already ratified the Constitutional Amendment Bill. Therefore, we should not hessitate to appreciate the efforts of both Central Government and State Governments to implement the GST from April 1, 2017.
However, once the Consti

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well as from the States i.e. the Finance Minister of the Centre and the Finance Ministers of the States, so it will not be easy for the Centre or the States to ignore its recommendations without any strong reason.
Composition of GST Council: The GST Council shall consists of following members:
* Union Finance minister, who will be Chairperson of GST Council;
* Union minister of State incharge of Revenue or Finance;
* The minister incharge of Finance or Taxation or any other minister nominated by each State Government and they will choose one among themselves to be the vice chairperson of the council for a particular period.
Subject matters on which recommendations will be made by GST Council:
The GST Council shall make the recommendations to the Union and the States on the following subjects:
* GST rates, cesses and surcharges levied by the Union, States and Local bodies which may be subsumed in the GST;
* Goods and Services exempted from GST;
* Model GST Law which is pu

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t shall have a weightage of 1/3rd of total votes cast.
* The State Governments taken together shall have a weightage of 2/3rd of total votes cast.
Approval of any decision by the GST Council: In GST Council, every decision shall be taken, when it is approved by at least 75% of the weighted votes of members present and voting.
From the above voting pattern, it appears that it will not be possible for the States to take any decision against the will of Centre, since the Centre has 33% votes and to get any decision passed, 75% votes are required, which is possible only when centre supports that particular decision. In the similar way Centre cannot take any decision which is opposed by States.
Challenges before GST Council: The GST Council has to face challenges while taking the given below decisions:
* Computation of compensation in lieu of revenue loss to the States, since losses are going to be notional in nature, so it becomes important to laid down a transparent and detailed me

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Supply- Taxable Event under Model GST Law-Inclusive and Subjective
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 1-9-2016

Supply- Taxable Event under Model GST Law-Inclusive and Subjective
With step-by-step progress towards Goods and Services Tax (“GST”), the Country is all set to witness the biggest indirect tax reform of unmatched importance in independent India. GST would mark a paradigm shift in the indirect taxation of our Country and the concept of origin based taxation as practiced currently, would no longer be there. In line with the global practices, concept of destination based taxation would usher in under GST. At the same time, 17 of the major taxes levied under the Indirect taxation i.e. Central Excise, Service tax, VAT/CST etc., would be subsumed under the ambit of GST, resulting in change of the taxable event as well.
Taxable events in present indirect tax regime
Determination of the taxable event in any tax law is of utmost significance as the

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d the Central Value Added Tax (CENVAT), on all excisable goods (excluded goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)………….”
Customs Duty
Goods imported into, or exported from, India
Section 12 of the Customs Act, 1962
“(1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, on goods imported into, or exported from, India……”
CST
Sale of goods in the course of Inter-State trade
Section 6 of Central Sales Tax Act, 1956
“(1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gaz

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n GST, but, simultaneously, the term 'supply' will hold the greatest significance and shall be important in determining the taxability of all transactions, whether commercial or otherwise under GST regime.
Section 3 of the Model CGST/SGST Act, 2016 [also applicable for the Model IGST Act vide Section 2(f) thereof] specifies the meaning and scope of the term supply, broadly, in the following manner:
Broad Category
Sub- section of Section 3
Particulars
1
Supply includes:
Normal supply of goods and/or services
1(a)
All forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
Import of service
1(b)
Importation of service, whether or not for a consideration and whether or not in the course or furtherance of business.
Supply Without consideration
1(c)
A supply specified in Schedule I (Matters to be treated as supply wi

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randed service by an aggregator under trade or brand name
4
Notwithstanding anything contained in sub-section 1, the supply of any branded service by an aggregator, as defined in sec 43B, under a brand name or trade name owned by him shall be deemed to be a supply of the said service by the said aggregator.
Inclusive definition of term 'supply'
Despite being the first step for taking off under GST regime, the Model GST Law has chosen to define 'supply' in an inclusive manner, without even defining what 'supply' actually means. Thus, the proposed definition of the term 'supply' under the Model GST Law suffers from ambiguity as it starts with the word “Supply includes….”.
It is crucial here to note that the term “includes” is generally used to expand the meaning of the former word. Even, the wide import of term “includes” has been settled in number of judicial pronouncements to establish that its usage expands the meaning. In the case of Doypack Systems (Pvt) Ltd. Vs. Union o

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payers and the Centre & the State Governments, which would lead to bizarre outcomes. The prudent approach here could have been to draw the meaning of such a crucial definition in crystal and definitive manner. Here, it would not be out of place to look at the meaning of term supply, as adopted in the other countries like Canada, Malaysia where GST is applicable.
Under Canadian Goods & Services Tax “supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, or other disposition”. Similarly, under Malaysia Goods & Services Tax, where GST made applicable with effect from April, 2015, Section 4 thereof defines supply as “subject to subsections (2) and (3), “supply” means all forms of supply, including supply of imported services, done for a consideration and anything which is not a supply of goods but is done for a consideration is a supply of services.…..”
Keeping in mind, the importance the term supp

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ut consideration as per Schedule I. The Schedule I to the Model CGST/SGST Act, comprises of a list of matters/ transactions, which would be treated as 'supply without consideration', which are as under:
• Permanent transfer/disposal of business assets.
• Temporary application of business assets to a private or non-business use.
• Services put to a private or non-business use.
• Assets retained after deregistration.
• Supply of goods and/or services by a taxable person to another taxable or non- taxable person in the course or furtherance of business.But, this will not cover goods sent for job work.
Perusal of the above provisions reveals that the government wants to levy tax on each and every transaction entered by a taxable person and don't want to leave any room for charging GST. Even any business assets/ services used for private/ non-business use, shall also be treated as supply. This can be best understood with a simple example of a Company providing

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realities of the situation and ensure to have concrete taxable base by defining the term 'supply' in clear and unambiguous manner, which is the pivotal term under the proposed GST regime, that would be the centric point to determine levy & collection of GST. Knowingly or unknowingly, the Model GST Law has sown the seeds for another series of fresh litigation, which the present indirect taxation is crippled with, when it comes to determining the test of manufacture for levy of Excise duty or rendering of services to levy Service tax. The law is striving hard even as on date to settle down after several decades of jurisprudence. It would indeed be quite interesting to watch how the term supply is re-defined, amended, explained, substituted in the Final GST Law, keeping in mind the long trodden path so far.
Reply By Ganeshan Kalyani as =
Sir, article is very nicely written. Sir, abroad there is single GST concept whereas we are going to have dual GST. State will have power on State GS

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should i buy machinery after gst or before gst which will be benefit for me
Query (Issue) Started By: – manohar singh Dated:- 29-8-2016 Last Reply Date:- 4-7-2017 Goods and Services Tax – GST
Got 11 Replies
GST
i want to purchase machinery from other state, should i buy the machinery before gst is implement or after gst is implement.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
The provisions of GST Act is yet to be finalised. Therefore non comments can be offered on your query.
Reply By KASTURI SETHI:
The Reply:
Sh.Manohar Singh Ji,
If you can wait for, better option is to purchase the machinery after implementation of GST, especially, in view of expected reduced rate of GST as compared to the present one. Most pro

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implemented in 2010. Then it was much talked about. But could not happen due to valid reasons. Now the development is good enough but the date of implementation is not sure.
Sir, today if you do interstate purchase, then against Form C you will be paying 2% CST , Excise duty @12.5% and entry tax (depend upon the State, say 4%). Total tax is 18.5%. Out of which cenvatable is 16.5% or 12.5% (without entry tax credit).
In GST the rate of 18% was suggested but now again it is debated to keep somewhere around 21% to 22%. If you purchase in GST, then IGST @ 21% or 22% would be liable to be paid. You will get full credit on intra state sale.
However, as suggested by Sri Sanjay Sir the call is supposed to be taken by the management. The market a

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akes a couple of years for the effect of GST to percolate and bring down the cost of the goods.
When the fact of the matter is that we have only almost made provisions in our Constitution for levying GST, the further path is a long way ahead.
A pragmatic business man does not and should not be swayed by this hype. After all, what you pay as taxes would certainly be allowed to be set off against your tax liability.
regards
abhishek p
Reply By Sahadev Maity:
The Reply:
Dear experts,
I am going to start a new factory, for the I need to buy some machineris from outer state of Rs around 30lacs. Previous CST was 2% but now GST is 18% on purchase of machinery.
So kindly advice me, can I avail the GST credit on purchase of that machinery i

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Ms. Penny Pritzker, U.S. Secretary of Commerce calls on the Union Finance Minister Shri Arun Jaitley: Both the leaders discussed the measures to increase the bilateral trade among the two countries.
GST
Dated:- 29-8-2016

The Union Finance Minster Shri Arun Jaitley said that many Indian States are growing at the rate of 10-11 per cent and the trade dialogue between the States and the US investors and companies can help in giving boost to the bilateral trade between India and US. He said that the Central Government has created a National Infrastructure Invest Fund (NIIF) in which various U.S. based insurance and pension funds, endowment funds can invest especially in infrastructure sector which has great potential in India. The

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d early next month. He also expressed India's interest to increase bilateral trade between the two nations and said that most of the concerns between the two countries have been either resolved or narrowed down to a large extent. He said that CEOs of various Indian companies are in constant dialogue with their US counterparts for increased trade and investment among the two nations.
Earlier, the U.S. Secretary of Commerce, Ms Penny welcomed the approval of GST Bill and hoped that this will boost the economic activities in the country at large. She suggested that the trade dialogue by the State Chief Ministers with different US authorities can be given a structured shape in order to give impetus to the bilateral trade. She expressed hope th

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status foodgrain pulses and oilseed
Query (Issue) Started By: – pravin bansal Dated:- 27-8-2016 Last Reply Date:- 28-8-2016 Goods and Services Tax – GST
Got 2 Replies
GST
Dear sir, Pl give me the status of foodgrain pulses and oilseeds and other agriculctur prouct in GST
Reply By Ganeshan Kalyani:
The Reply:
Sir, there is no clarify as regard the schedules and tax rate of the product. Thanks.
Reply By KASTURI SETHI:
The Reply:
Sh.Bansal Ji,
One has to wait for till the enactme

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WITH GST CONSTITUTIONAL AMENDMENTS, WHAT NEXT ?
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 26-8-2016

The GST Bill – The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 has been discussed and passed by Rajya Sabha on 3rd August, 2016 after a 7 hours long debate by members of Rajya Sabha. The discussion on the GST bill came after months of discussions between the ruling party and the opposition – with both sides meeting multiple times to negotiate amendments.
The momentous Bill, which marks the first parliamentary step towards implementation of a “one country, one market, one tax” framework, was cleared by a two-thirds majority, which is required for any Constitution Amendment Bill, following a division of votes.
In the process of renewed Parliamentary approvals, opposition had sought from the Government certain assurances and the amendments are in relation to the following:
* The actual GST Bill should take care of concerns about

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* It will then go for presidential assent before being notified in the gazette
* After all these legal procedures, Parliament would take up the actual CGST and IGST Bills (possibly in the winter session).
* Passage of SGST law by State Legislative Assemblies
* Formulation of GST rules by Union and States and notification thereof
* GSTN Network including testing
* Training and awareness
The Bill has since been ratified by the Legislative Assemblies of Assam (12.08.2016), Bihar (13.08.2016), Jharkhand (17.08.2016), Himachal Pradesh (22.08.2016), Chhattisgarh (22.08.2016) and Gujarat (23.08.2016) and ratification by Delhi, Madhya Pradesh, Haryana, Goa, Maharashtra, Rajasthan etc are likely to follow suit.
GST : Immediate Challenges ahead
* Ratification by states
* Rate of GST
* Exemptions / Negative list
* Threshold limits
* Finalization of GST laws
* Composition limit
* Dual control by state / centre
The ratification by States is not a major issue and will hap

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amendment bill . one can expect soon that Central Government will move to the next stage soon i.e To decide on the contentious issue on fixing GST rates in consultation with the various states.
It is expected to benefit consumer help Governement revenues and add over all economic growth.
Dated: 30-8-2016
Reply By Dr. Sanjiv Agarwal as =
Dear Manoj ji ,
What is the need to challenge Constitutional Amendment ? Are there any issues ?
The Constitutional Amendment Bill is passed by both the houses of Parliament and there does not seem to be anything unconstitutional .
Thanks & Regards ,
CA Neha Somani
Dated: 31-8-2016
Reply By Dr. Sanjiv Agarwal as =
Dear Shankar ji ,
Thank you for your comments .
The GST Bill is to be ratified by minimum of 16 states and then the Bill would be signed by President to become an Act . Further , GST Council would be constituted within 60 days to decide and recommend to the Government about the rates and other things .
Thanks & Regards ,
C

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Goods Without Title Transfer Deemed as Services Under GST; Customs Duty and GST Applied on Imports.
Notes
GST
Where supply of goods without transfer to title has to be treated as service, whe

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TAXABLE EVENT UNDER GST
By: – CA Chandan Jha
Goods and Services Tax – GST
Dated:- 24-8-2016

Taxable Event under GST.
* What is Taxable Event.?
(a) Taxable:- Liable to be taxed; subject to tax.
(b )Event: – A thing that happens or takes place, especially one of importance.
(Source :- Oxford Dictionary)
Taxable event: – A taxable event is any event or occurrence that results in a tax liability. Normally taxable event means occurrence creates or attracts the liability to be fixed.
Tax can be imposed only on taxable event.
Taxable event under GST.
Tax will be levied when supply of Goods and/or services. Time of supply of goods and/or services is more important under GST.
Hence the word “supply” is more important. Consideration is not mandatory for supply.
Meaning of Supply.
(a) Supply :- A stock or amount of something supplied or available for use.
(b) Sale :- The exchange of a commodity for money; the action of selling something.
(Source: – Oxford D

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eed commission or brokerage, either supplies or receives any goods and/or services on behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply.
(3) Subject to sub-section (2), the Central or a State Government may, upon recommendation of the Council, specify, by notification, the transactions that are to be treated as-
(i) A supply of goods and not as a supply of services; or
(ii) A supply of services and not as a supply of goods; or
(iii) Neither a supply of goods nor a supply of services.
(4) Notwithstanding anything contained in sub-section (1), the supply of any branded service by an aggregator, as defined in section 43B, under a brand name or trade name owned by him shall be deemed to be a supply of the said service by the said aggregator.
Definition of Supply is “inclusive”. Hence any supply of goods or services would get cover, even if not specified in this section.
As per above discussion Supply does not need Considerat

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be made without a consideration is 'Supply'
As per schedule I of model of GST 2016. As follows.
* Permanent transfer/ disposal of business Assets :- Sale/ discard or otherwise without consideration.
* Temporary application of business assets to a private or non-business use :- Such as Business car, plant, building use for personal, partner, director, etc.
* Services put to a private or non-business use :- such as telephone, other services provided to proprietor, partner, director, etc.
* Assets retained after deregistration: – if taxable person de-registered, he will be liable to pay GST. But if transfer of business as a going concern, then it will not be supply. As per schedule II
* Supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course or furtherance of business: – this will be cover like sample, gift, etc.
Provided that the supply of goods by a registered taxable person to a job worker in term of section 43A shall not

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or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person.
(2) Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.
(3) Where any goods, forming part of the business assets of a taxable person, are sold by any other person who has the power to do so to recover any debt owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
(4) Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be

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non-requirement of such certificate from such authority, from any of the
Following, namely:-
(i) An architect registered with the Council of Architecture constituted under the Architects Act, 1972; or
(ii) A chartered engineer registered with the Institution of Engineers (India); or
(iii) A licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) The expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c) Temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d) Development, design, programming, customisation, adaptation, up gradation, enhancement, implementation of information technology software;
(e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
(f) works contract including transfer of property in goods (whether as goods or in some oth

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Reverse Charge Mechanism: Import of Services Considered Supply Under GST, Subject to Taxation.
Notes
GST
Meaning and scope of supply under GST (Part 2) – Import of services will be treated as

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Understanding “Supply” Under GST: Key to Applying CGST, SGST, and IGST on Goods and Services Transactions.
Notes
GST
Meaning and scope of supply under GST (Part 1) – Since CGST, SGST or IGST

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Meaning and scope of supply under GST (Part 2) – Import of services will be treated as supply and will be subject to GST under reverse charge.
Section – 003 – Meaning and scope of supply MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
GST
Act-Rules
Dated:- 23-8-2016
Section – 003 – Meaning and scope of supply
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
As per Section 3(1)(b) importation of services for any purpose, have included within the meaning and scope of the term "Supply"
It is for the obvious reason that, importation of goods are subject to Customs Duty since the same would be crossing the Custom Borders Physically, but services may not be subject to crossing of c

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porary import of goods for Repair, for delay in Exhibitions, for Scientific research etc for different periods and for different conditions, are exempt from duty of customs. However, scope of such exemptions are limited and restricted.
Now, will there be a new exemption under Customs that where import of services are falling with the scope of section 3(1)(a) of GST law, the same will be exempt from the duties of customs. On the contrary, there may be an exemption under the GST laws so that where import of services have suffered duties of Customs, the same will be exempt from GST on importation from the reverse charge mechanism.
Exemption from Reverse Charge
Further, as per section 9(3)(c), import of services for personal use upto a spe

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Meaning and scope of supply under GST (Part 1) – Since CGST, SGST or IGST will be levied on supply of goods or services, it is important to understand this term first
Section – 003 – Meaning and scope of supply MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
GST
Act-Rules
Dated:- 23-8-2016
Section – 003 – Meaning and scope of supply
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
Sub Section (1) states that:-
Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,
(b) importation of service, whethe

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CESTAT rules afloat vessels are goods, not immovable property; subject to GST on sale or supply.
Notes
Service Tax
Whether the vessels or ships that are afloat are not goods and immovable pro

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Whether the vessels or ships that are afloat are not goods and immovable property? – CESTAT says Yes. – Whether GST would be applicable on sale / supply of floating vessels or ships?
Case – Commissioner of Central Excise And Service Tax (LTU) , Mumbai Versus The Shipping Corporation of India Ltd. – 2016 (8) TMI 852 – CESTAT MUMBAI
Service Tax
Case-Laws
Dated:- 23-8-2016
Commissioner of Central Excise And Service Tax (LTU) , Mumbai Versus The Shipping Corporation of India Ltd. – 2016 (8) TMI 852 – CESTAT MUMBAI
The issue though has been discussed in the context of Service Tax but has far reaching implications.
One of the reasons given by the Hon'ble tribunal (third member) while ascertaining the nature of transaction for

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ion of the dilemma of being so described. Land is, undoubtedly, immoveable property. Definition of 'goods' in the Sale of Goods Act, 1930 is, however, attracted to certain appendages of land to the extent that they can be separated from land before sale as part of contract of sale. Hence, structures that can be detached from the land are considered to be moveable. Logically, the oceans and the seas are equivalences of land and the inextricability of a vessel or ship from the waters should bring them within the ambit of immoveable. Ships before launch and for breaking up are goods but vessels or ships that are afloat are not goods except for the time that they are the subject of a sale agreement. That ships, vessels and motor vehicles need n

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s stated in clear terms that, "As conveyances, ships/vessels and motor vehicles move easily on water or land but, not being goods that are amenable to severance from land/water, are not distinguishable from immoveable property."
Now a question of millions comes into one's mind that whether GST would be applicable on the sale (or to say supply in terms of GST concept that is involving) of floating vessels or ships?
It is a fact that GST would be levied only on supply of goods and services, immovable property within the exclusive domain of State for the purpose of tax as per the Schedule VII of the Constitution of India, and therefore immovable property shall not be liable to Goods and Services Tax (GST).
Therefore, it is to

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Revenue Secretary reviews IT preparedness of the various stakeholders for smooth roll-out of Goods and Services Tax
GST
Dated:- 23-8-2016

A meeting was held under the Chairmanship of Revenue Secretary Dr Hasmukh Adhia to review the IT preparedness of the various stakeholders for smooth roll-out of Goods and Services Tax (GST). In the said meeting representatives of Reserve Bank of India (RBI), Principal CCA, Central Board of Excise & Customs (CBEC), Heads of Government Business and

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After GST – Machinery booking on commission
Query (Issue) Started By: – Udaya Kiran Dated:- 23-8-2016 Last Reply Date:- 11-9-2016 Goods and Services Tax – GST
Got 7 Replies
GST
Hello Sir,
We have a business of booking rice mill machinery, Manufactured by X Company, to rice millers in Andhra Pradesh for which the X company pays commission to me. After GST, can we continue as it is or is it necessary that we purchase from X company and sell it to rice millers.
Thank you.
Reply By KASTURI SETHI:
The Reply:
Sh.Udaya Kiran Ji,
After the implementation of GST, the concept of Service will not abolish. It is subsumed into GST. In my view, it will continue.
Reply By Udaya Kiran:
The Reply:
Dear Sir,
Thank you for the reply.
R

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Finance Secretary (FS) inaugurates the Training Program on Government E-Marketplace (GeM) for Government Users; FS: Training will enable the Government Procurement Officers to make best use of new technologies to procure goods and services in a more transparent, accountable and efficient manner.
News and Press Release
Dated:- 22-8-2016

Press Information Bureau
Government of India
Ministry of Finance
22-August-2016 16:17 IST
The one-day hands on training program for Procurement Officers of the Central Government Ministries/Departments was inaugurated here today by Shri Ashok Lavasa, Finance Secretary, Government of India. The training program has been jointly organized by DGS&D, National Institute of Financial Management (N

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same ease and efficiency that is presently offered by e-commerce sites. He wanted that such training programme should be taken seriously and more and more officers should be trained including the State Governments.
The Finance Secretary requested the GeM team to make efforts to continuously improve the GeM portal and ensure that it remains free from manipulation and any unethical practices. Shri Lavasa also stated although it has been made mandatory on GeM to make payment to the vendors within 10 days of receipt of goods/services, efforts should be made to further reduce this time span as time is money and ultimately the cost of delayed payment is born by the Government. GeM has a potential to grow and will bring in a lot of credibility an

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GIST OF GST
By: – esha agrawal
Goods and Services Tax – GST
Dated:- 20-8-2016

Hello everyone coming with another article on GST, a very hot topic in discussion now a days , here is a gist of GST with meaning of some important terms which will help readers to understand the definitions properly and help practising chartered accountants to deal their clients efficiently in the matter of GST
You all must have heard so many information on the Goods and Services Tax. Some are saying GST will take away the 'cascading impact' of taxes and some are saying GST is 'one nation, one rate'.
Firstly GST will not reduce the amount of tax you pay, but it will make it less tiresome to pay and collect. GST is about fewer taxes, at unified rate, as we all know that the taxes are levied both by central and state government in indirect taxes in different level like vat , service tax, excise duty etc, what GST will do is to sweep ('subsume') many indirect taxes into a single label.
As thi

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ted from taxes due on final product, but this exists in name only because so many taxes like central sales tax, additional excise and customs duty, luxury tax, to name a few – are not eligible for such set-offs, As a result, both producers and sellers end up paying taxes on the same inputs over and over again.
It should be thanks that in case of GST there is no concept of input tax credit all taxes are summed up and GST is you pay just once for.
Now here is the meaning of some basic terms in GST like What does the word GOODS means in GST
Goods means all kinds of movable properties (which can be moved as such without any dismantling) (only tangible) eg:- visualize, marker, exercise machine, fan etc
INCLUDING securities, growing crops & grass, things attached to or forming art of the land e.g. electricity pole etc
EXCLUDING money, Actionable claim
What does the word SERVICES means in GST
ANYTHING OTHER THAN GOODS i.e. Do something or not to do something (like non competence contra

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upply of goods but
* if only ” RIGHT TO USE” is transferred then it is called supply of service
In case of business assets
* if it is permanent transfer then it is called supply of goods,
* but if temporary transfer then it is called supply of services,
* if sold by third party (bank) then supply of goods by the person
In case of Immovable Property
* If there is Renting/ Leasing of immovable property then it issupply of service
* If sale of under construction property then also it is supply of service
In case of Intangible Property (IPR)
* Intangible property is either temporary or permanent transfer in both the cases it is supply of service
In case of software
* If the software is customised then it is supply of service
* But if the software is readymade then it is supply of goods
Goods on which 100% Exemption is there in GST
ROTI :- flour, pulse, rice, milk, cereals, poultry etc
KAPDA:- textile
MAKAN:- renting for residential/ construction for one family
SH

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the houses, currently the bill is under ratification process. There is considerable time for GST to become an act. Thanks.
Dated: 21-8-2016
Reply By esha agrawal as =
There is no such notification this I have written just to make understand readers easily
Dated: 21-8-2016
Reply By KASTURI SETHI as =
Nicely explained by both experts i.e. Sh.Ganeshan Kalyani Ji and the author.
Dated: 21-8-2016
Reply By swaminathan venkataraman as =
Wprt :
In case of Immovable Property
* If sale of under construction property then also it is supply of -'GOODS' AND 'service' – ( envisaged to be rolled into one, though).
To note the words in FONT; see :
“SCHEDULE II
MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES”
……..
If so care and interested, for individual's own and the common good, look up and give further thoughts to the canvassed viewpoints against the constitutionality /propriety of the proposed levy as shared, with reasoning, on Facebook /Linkedin, also elsewhere in p

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Revenue Secretary and Senior Officers of Department of Revenue and CBEC hold Sectoral Meetings with various stakeholders on GST in order to understand and address the apprehensions and concerns of the stakeholders about important aspects of GST
GST
Dated:- 19-8-2016

Continuing with its commitment to the early and smooth roll-out of the Goods and Services Tax (GST) and recognizing the role of trade and industry as equal partners and stakeholders in this historic reform, both Department of Revenue and Central Board of Excise and Customs (CBEC) are holding interactive sessions, spread over three days starting from yesterday i.e. 17th August, 2016, with representatives of the various sectors of the economy. Revenue Secretary Dr Ha

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GST Constitutional Amendment Bill passed in RajyaSabha with Key amendments
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 19-8-2016

Dear Professional Colleague,
The long-delayed Constitution (122nd Amendment) Bill, 2014 on GST (“122nd CAB” or “GST Bill”) has finally got the nod of the Rajya Sabha on August 3,2016, with the Government successfully stitching together a political consensus on the GST Bill, to pave the way for much-awaited roll out of the landmark tax reform that will create a common market of 1.25 billion people.GST, is the biggest indirect tax reform since independence, is aimed at dismantling Inter-State barriers to trade in goods and services by subsuming a slew of around 17 indirect taxes viz. Excise Duty, Service Tax, VAT, CST, Luxury tax, Entertainment Tax, Entry Tax, Octroi, etc.
The Rajya Sabha has unanimously passed the ambitious GST Bill as amended with over 2/3 majority. The motion for the constitutional amendment for the GST Bill has b

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gust 2, 2016, has circulated to MPs, the amendments it has proposed in the GST Bill to enable implementation of GST. These proposed amendments importantly includes dropping of 1% additional tax on Inter-State Sale of goods and a definite provision in the statute for 100% compensating the States for any revenue loss for 5 years, amongst others.
With these official amendments, the Government partially met the demands of the Congress party which has been blocking the bill in the Rajya Sabha and this enabled the 122nd CAB to finally see the light of the day.
We are summarising herewith key amendments to the GST Bill, which was circulated to Rajya Sabha members on August 2, 2016, for easy digest:
Dropping 1% Additional taxon Inter-State supply of goods:
It is proposed to delete the provision under Clause 18 of the GST Bill.
Clause 18 of the GST Bill:The 122nd CAB proposes for levy of an Additional tax, not exceeding 1%, on Inter-State supply of goods in the course of Inter-State trade

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compensation to States for any loss of revenues arising on account of GST, for a period which may extend to five years, based on the recommendations of the GST Council. This implies that Parliament may decide to provide compensation to States and may also decide the time period for which it can provide such compensation, which may extend to five years.
Proposed amendment:The Parliament shall, by law, provide for compensation to States for any loss of revenues arising on account of GST, for a period which may extend to five years, based on the recommendations of the GST Council. This implies that the Parliament must provide compensation and compensation shall be provided for a maximum time period of five years.
Recommendation of the Select Committee, 2015:The Committee felt that there is no justification for substitution of the word 'may' with 'shall'. It, however, recommended that compensation should be provided for whole period of 5 years and accordingly proposed amended Clause 19 a

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le 279B i.e. provision for GST Dispute Settlement Authority, as was proposed in Constitution(115thAmendment) Bill, 2011.
Other changes:
Integrated Goods and Services Tax (“IGST”)
Clause 9: Apportionment of IGST i.e. Article 269A: It has been clarified that the States' share of the IGST shall not form a part of the Consolidated fund of India.
Clause 12: IGST term to be replaced with GST on suppliesin the course of inter-state trade or commerce: Under Clause 12 of the GST Bill, it was mentioned that the GST Council would make recommendations on the apportionment of the IGST. Since, the term IGST was not defined,it has been proposed to replace this term with “Goods and Services Tax levied on supplies in the course of inter-state trade or commerce under article 269A”.
Inclusion of CGST and IGST in tax devolution to States
It has been proposed that under Clause 10 of the GST Bill, CGST and the Centre's share of IGST will be distributed between the Centre and States.
Clause 10 of the

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es, Exempted goods and services, dual control& adjudication, etc.
Thereafter, two legislations-Central GST (CGST) and Integrated GST (IGST) will have to be passed by Parliament and a State GST (SGST) legislation by each of the State Legislatures.
Passage of the 122nd CAB in the Parliament is being seen as a big victory for the Narendra Modi government. The next big challenge for the Narendra Modi government is to get the States on board and get rest of the process going as quickly as possible to meet the deadline of implementation of GST by April 2017.
Video presentations on Model GST Law:
Watch the following videos to enrich knowledge regarding the key takeaways of the Model GST Law and the areas to be worked upon under the Model GST Laws – CGST, SGST and IGST:
• Presentation on Draft GST Law – Levy, Taxable Event: Supply, Taxable Person, Composition Scheme:https://www.youtube.com/watch?v=XrWHZMZf8GQ
• Highlights of Draft GST Law, 2016: https://www.youtube.com/watch?v=

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LokSabha passes GST Constitutional Amendment Bill, as amended by Rajya Sabha
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 18-8-2016

With a strong pitch for “one nation one tax”, the Hon'ble Finance Minister, Shri. Arun Jaitley presented, on August 8, 2016, in the Lok Sabha, the Constitution (122ndAmendment) Bill, 2014 on GST (“122nd CAB” or “GST Bill”), which was passed by the Rajya Sabha on August 3, 3016 with certain key amendments, that enables the GST in the country.
The Lok Sabha has unanimously passed the GST Bill with all 443 members present in the Lower House of the Parliament voting in favour of the Bill, ratifying earlier nod by Rajya Sabha members. However, AIADMK leader P. Venugopal staged a walk-out unhappy with the clarifications presented by Finance Minister, Shri. Arun Jaitley on the GST Bill.
“GST can't be seen as a victory of a party or government, it is victory for democratic ethos of India and a victory for everyone, “Hon'ble Prime Min

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approved by the Lok Sabha in May last year (May 6, 2015) and referred to a Select Committee of Rajya Sabha which had submitted its Report on 122nd CAB on July 22, 2015. The GST Bill was introduced in Rajya Sabha in May last year where it has been pending because of consensus to be emerged between ruling and opposition party over certain provisions viz. Dropping of 1% additional tax on Inter-State sale of goods, Capping of GST rate in 122nd CAB, Forming of dispute resolution authority.
The key to forging consensus was the amendments the National Democratic Alliance (NDA) effected in the GST Bill, a copy of which was circulated among Rajya Sabha members on August 2, 2016, which importantly includes, dropping of 1% additional tax on Inter-State Sale of goods and a definite provision in the statute for 100% compensating the States for any revenue loss for 5 years, amongst others.
Since there were key amendments in the original draft of the GST Bill that was passed in the Lok Sabha last y

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be passed by Parliament and a State GST (SGST) legislation by each of the State Legislatures.
Passage of the 122nd CAB in the Parliament is being seen as a big victory for the Narendra Modi government. The next big challenge for the government is to get the States on board and get rest of the process going as quickly as possible to meet the deadline of implementation of GST by April 2017.
These steps would require a lot of time, patience and constant deliberations both at the States and Central Government level along with substantial engagement with the industry bodies, traders, service providers and almost every local trade bodies and associations.
"The GST roll-out deadline of April 1, 2017, is certainly stiff. But it's still better to have a deadline”
Shri. Arun Jaitley, Finance Minister
Video presentation on key aspects of Model GST Law:
Watch the video presentation on Draft GST Law – Levy, Taxable Event: Supply, Taxable Person, Composition Scheme at https://www.yo

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