Goods and Services Tax

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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Clarification On GST
Query (Issue) Started By: – CA Alkesh Kasliwal Dated:- 13-8-2016 Last Reply Date:- 10-7-2017 Goods and Services Tax – GST
Got 7 Replies
GST
My Query is that
Many of the manufacturing unit get exemption by State Govt. of VAT And CST under industrial Promotion Policy 2014 in Madhya Pradesh for Five from the date of Commencement of production of New units
So my query is that whether the same exemption is also available for the aforsaid entity or not
Please clarify.. As soon as possible
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
It all depends on the provision of GST law to be enacted, rules to be framed under the law and Notifications to be issued under the law and the rules. Therefore it is too

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continue to get to the assessee upto the period the exemption is given under VAT regime. Even earlier when Sales tax was changed to VAT the exemption made available were continued upto the period of eligibility. Thanks.
Reply By YAGAY AND SUN:
The Reply:
Such State specific industrial promotion scheme shall be ended and refund mechanism after payment of GST will come into picture.
Reply By Ganeshan Kalyani:
The Reply:
Sir, agreed but those companies which have already invested huge capital and the Govt. Has already given them exemption for a particular period. I guess these exemption shall continue until such period. However I agree that those are planning to invest in GST regime the exemption shall not be given. Thanks.
Reply By KRT

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GST TO ELIMINATE MULTIPLE TAXES
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 13-8-2016

After 25 years India started walking on the road to economic reforms and as India marches towards introduction of GST in 2016-17 in 70th year of its independence, we may liberalize ourselves from the clutches of multiplicity of taxes levied by both, centre as well as states. However, the GST which is proposed in the current form is a combination of three types of taxes- Central GST, State GST and Integrated GST.
There cannot be a better way to celebrate India's independence. The dream to have GST in India may soon be a reality now. The month of August once again became historic after August of 1947 when India attained independence from British raj. August 2016 created a historic achievement once again as India march ahead on the road to fiscal freedom on tax front as 122nd Constitutional Amendment has been approved by both the houses of Indian Parliament i.e, on

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al Sales Tax (1956) Service Tax (1994) and a host of state levied taxes including Value Added Tax (VAT). GST aims at subsuming many multiple taxes presently levied by Central and State Governments with the objective to follow one nation – one market – one tax policy and scrap the cascading effect of taxes on cost i.e. payment of tax on taxes. GST would therefore, bring in economies of scale, operational efficiency, lower cost of production and benefits accruing to consumers. GST is expected to change the way businesses are done, provide host of opportunities to professionals, reduce corruption and consumer will eventually benefit.
Constitutional Amendment
The Constitution (122nd Amendment) Bill, 2014 as amended has now been passed by both the houses of Parliament in August, 2016 – on 3rd August by Rajya Sabha and on 8th August by Lok Sabha ( and that too unanimously in both houses). The major amendments made in the original Constitutional Amendment Bill while passage thereof include

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are being subsumed:
* Subsuming of State Value Added Tax/Sales Tax,
* Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
* Octroi and Entry tax,
* Purchase Tax,
* Luxury tax, and
* Taxes on lottery, betting and gambling.
However, it will have to be ensured by the GST Council that states should not levy new taxes in future (unless there is a emergency) to complicate the taxes again over a period. We should not have a sequel of GST like GST-2 after a decade or so. This is important as centre has agreed to compensate the states for any revenue loss arising out of GST. Also, there is a need to discourage local bodies to levy taxes. Their fund requirements may be met by States.
Benefits of GST
The benefits of GST accruing to various stake holders can be summarized as under:
For business and industry
* Easy compliance: A robust and comprehensive IT system would be the foundation of the GST

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nd comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.
For Central and State Governments
* Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.
* Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would

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h Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
Input Tax Credit
The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit between CGST and SGST would be permitted. However, IGST can be set off against IGST, CGST and SGST.
GST Preparedness
Preparedness for GST in next few months will involve Tax Planning Review, Transactions Review, Training Manpower, Cost Effectiveness in Inventory, logistics & Final goods, business Planning with anticipation of new tax structure with competition, Fastest Implementation & Transition to GST, Procurement and Purchase

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GST – Job Work under GST
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 13-8-2016

Editorial Note
Model GST law has provided special procedure for removal of goods from principal manufacturer to job worker and return from job worker to principal manufacturer subject to certain conditions and limitations. This article aims at enlightening readers about the provisions related to job work.
Introduction
The definition of supply is very wide and had covered almost all sorts of transactions within its ambit. Material sent for job work is also covered under supply. Hence, GST would be payable on material sent for job work. However, law has kept this special transaction into consideration while drafting and thus it provides for special procedure for removal and receipt of goods sent on job work.
Meaning of Job work
“Job work” means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job

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work from one job worker to another job worker without payment of duty.
Time limit for receipt of goods back from job worker
Section 43A which provides for special procedure for removal of goods on job work does not specify any time limit for receipt of goods back However, another provision contained in clause 16A specifies time limit for receipt of goods. Accordingly, inputs should be received back within the period of 180 days of receipt of goods by job worker. Further, this time limit in respect of capital goods is 2 years.
Treatment to goods received back from job worker
After completion of job-work, Principal may either (a) bring back such goods to any of his place of business, without payment of tax, for supply therefrom on payment of tax within India, or with or without payment of tax for export, as the case may be, or (b) supply such goods from the place of business of a job-worker on payment of tax within India, or with or without payment of tax for export, as the case ma

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he said inputs, after completion of job-work, are received back by him within one hundred and eighty days of their being sent out:
The “principal” shall be entitled to take credit of input tax on inputs even if the input are directly sent to a job worker for job-work without their being first brought to his place of business, and in such a case, the period of one hundred and eighty days shall be counted from the date of receipt of the inputs by the job worker.
Input tax credit of capital goods sent to job worker –
The “principal” shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax on capital goods sent to a job-worker for job-worker for job-work if the said capital goods, after completion of job-worker for received back by him within two years of their being sent out.
The “principal” shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job-work wit

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spect of goods sent to job worker
Presently, a manufacturer can sent material for job work without payment of excise duty. As per Model Law if inputs or/ and semi-finished goods were sent for job work prior to introduction of GST law and were lying with the job worker, declaration shall be submitted by both manufacturer and job worker within specified period. The goods can be brought back to place of Principal manufacturer within six months without payment of tax. However, this period of six months can be extended by Commissioner for period of two months. If the material is not returned within six months (or further two months if extension is granted), tax will be payable by job worker or manufacturer.
Transitional provisions in respect of finished goods sent for test purpose
As per Model Law if finished goods were sent out for test or further process prior to introduction of GST law and were lying outside, these can be brought back within six months from date of commencement of GST

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GST – Definitions – An analysis
By: – Balasubramanian Natarajan
Goods and Services Tax – GST
Dated:- 12-8-2016

Section
Content
Our Comments
2(6)
(6) “aggregate turnover” means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be; Explanation.- Aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.
For determining the Threshold limit this is important. All India Turn over of both Goods and Services will be clubbed. For working out threshold limits for individual states how this will be applied is not clear
2(7)
(7) “agriculture" with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture, the raising

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connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members, as the case may be; (f) admission, for a consideration, of persons to any premises; and (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
A very wide and inclusive definition.
Covers Profession and Vocation or any other similar activity. Te term similar activity may give scope for interpretation and disputes
2(21)
(21) “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business;
IF done in individual capacity not in the course or furtherance of busine

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es, whether by the said person or by any other person: Provided that a deposit, whether refundable or not, given in respect of the supply of goods and/or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply
Payment for inducement of supply of goods or services is also a consideration.
Any Deposit which is not applied as consideration by the supplier for supply will not be treated as consideration
It covers even advance payments made for supply of goods
2(30)
(30) “continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis;
The periodicity of such supplies and the period of contract is not specified
2(31)
(31) “continuous supply of services” means a supply of se

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10;
2(43)
(43) “export of goods” with its grammatical variations and cognate expressions, means taking out of India to a place outside India;
Why taking out and not supply from India to a place outside India
2(44)
(44) the supply of any service shall be treated as “export of service” when (a) the supplier of service is located in India, (b) the recipient of service is located outside India, (c) the place of supply of service is outside India, (d) the payment for such service has been received by the supplier of service in convertible foreign exchange, and (e) the supplier of service and recipient of service are not merely establishments of a distinct person; Explanation.- For the purposes of clause (e), an establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons.
2(46)
(46) “fixed establishment” means a place (other than the place of business) which is characterised by a sufficient degree of perman

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e supplier of service and the recipient of service are not merely establishments of a distinct person;
Explanation 1.- An establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons. Explanation 2.- A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory
2(54)
(54) “input” means any goods other than capital goods, subject to exceptions as may be provided under this Act or the rules made thereunder, used or intended to be used by a supplier for making an outward supply in the course or furtherance of business;
* Used or Intended to be used
* Other than capital goods
* For making Outward Supply
* In the Course of Business or
* For furtherance of Business
2(55)
(55) “input service” means any service, subject to exceptions as may be provided under this Act or the rules made thereunder, us

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ained, the location of such place of business; (ii) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (iii) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and (iv) in absence of such places, the location of the usual place of residence of the recipient;
2(65)
(65) “location of supplier of service” means: (i) where a supply is made from a place of business for which registration has been obtained, the location of such place of business ; (ii) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (iii) where a supply is made from more t

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RC. Difference between barter and Exchange is to be noted
2(75)
(75) “place of business” includes (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or (b) a place where a taxable person maintains his books of account; or (c) a place where a taxable person is engaged in business through an agent, by whatever name called;
Why the word taxable person is used here
2(80)
(80) “recipient” of supply of goods and/or services means- (a) where a consideration is payable for the supply of goods and/or services, the person who is liable to pay that consideration, (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available, and (c) where no consideration is payable for the supply of a service, the person to whom

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may, on the recommendation of the Council, by notification, specify;
2(93)
(93) “tangible property” means any property that can be touched or felt;
Property has not been defined
Definition of property
There are different definitions are given in different act as per there uses and needs. But in the most important act which exclusively talks about the property and rights related to property transfer of property act 1882 has no definite definition of the term property. But it is defined in some other act as per their use and need. Those definitions are as follows:
Section 2(c) of the Benami Transactions (Prohibition) Act, 1988 defines property as:
“Property” means property of any kind, whether movable or immovable, tangible or intangible, and includes any right or interest in such property.
Section 2 (11) of the Sale of Good Act, 1930 defines property as:
“Property” means the general property in goods, and not merely a special property.
2(104)
(104) “turnover in a Stat

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nd/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, whether or not for a consideration and whether or not in the course or furtherance of business, and (c) a supply specified in Schedule I, made or agreed to be made without a consideration. (2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services. (2A) Where a person acting as an agent who, for an agreed commission or brokerage, either supplies or receives any goods and/or services on behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply. (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 s

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CPI reflects the realistic picture of the prices of consumer goods and services
News and Press Release
Dated:- 11-8-2016

Consumer Price Indices (Rural, Urban, Combined), compiled by the Ministry of Statistics and Programme Implementation, reflects the realistic picture of the prices of consumer goods and services because of the following reasons:
* prices are collected from 1,181 selected village markets covering all districts of the country for rural areas and from 1,114 urban markets of 310 selected towns of urban areas;
* these markets are, more or less equally, distributed over different weeks of a month to capture price variations during the month;
* only transaction prices, that is prices actually paid by the consu

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