Goods and Services Tax

GST Update 3 – GST threshold
GST
Dated:- 15-6-2015

As per the official sources:
* Traders with a turnover of less than ₹ 10 lakh a year are neither required to pay GST nor to take registration for it.
* Those with annual sales between ₹ 10 lakh and ₹ 50 lakh will need to pay tax at a rate lower than standard GST rate.
* However, the concessional tax rate would not be available for traders making inter-State transactions irrespective of their turnover.
* Th

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GST Update 2 – Bill on gst referred to select committee
GST
Dated:- 15-6-2015

A Constitution Amendment Bill providing for roll out of the GST was on 12/05/2015 referred to a select committee after the opposition insisted on its legislative scrutiny of the proposed legislation in Rajya Sabha where the government faces the numbers crunch.
The 21 member panel will give its report by the last day of the first week of the Monsoon session.
FM moved the motion for referring the Bill to

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GST update 1 – FM sticks to April deadline for gst
GST
Dated:- 15-6-2015

Finance Minister Arun Jaitely on 14/5/2015 stuck to the April deadline for rolling out GST.
“I would have been much happier if the Rajya Sabha (had) also approved the GST. In that sense I would not have been cutting it too fine with regard to the April 1, 2006 deadline. I would only hope that the principal opposition party had realised the significance of this timeline at this moment,” the Minister told reporters.
The Bill to amend the constitution had to be referred to a select committee of the Rajya Sabha as the Congress blocked its passage, arguing that it needed further consultation. Once the panel's report is received, the Upper House will have to

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GST – Some Issues and Possible Solutions
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 29-5-2015

Goods and service tax
Issues
Solutions
Meaning
GST is a comprehensive VAT on the supply of goods or services or both. All goods and services will be subject to GST unless specifically exempted i.e. operating on negative concept.
Defined as “any tax on supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption”.
Central & State taxes subsumed
Central Tax – Central Excise Duty, Service Tax, Additional Custom Duty, Central Surcharge,
State Tax – Sales Tax, Entertainment Tax, Octroi Tax, Entry Tax, Purchase Tax, Luxury Tax, Lottery Tax, Betting and Gambling Tax, St

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commended by GST council.
Procedural Compliance
Likely to increase as it provides that every branch of the manufacturer/ service provider located in different states will have to obtain registration separately.
Common threshold exemption limit for manufacturer/ Service provider
As per the information, there will be common threshold limit for manufacturer/ service provider. This will trouble manufacturer as the limit will be heavily reduced.
Carry forward of CENVAT credit
It has been experienced that in transition phase, the credit is allowed to be carried forward.
Restriction in utilisation of credit
Since, CGST and SGST are to be treated separately, taxes paid against the CGST shall be allowed to be taken as ITC for CGST only and t

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GST- Driver for Economic Growth in India
By: – CSSANJAY MALHOTRA
Goods and Services Tax – GST
Dated:- 18-5-2015

Download Power Point Presentation on:
GST- Driver for Economic Growth in India
 
Reply By CS RAHUL AGARWAL as =
WONDERFUL PRESENTATION SIR. HATS OFF!!
REALLY VERY HAPPY TO KNOW ABOUT YOUR PROFILE AND MAKES ME FEEL THAT ATLEST I AM NOT THE ALONE CS IN IDT. THANKS FOR SHARING & YOUR EFFORTS.
Regards,
Dated: 23-5-2015
Reply By kailash singhal as =
dear sir ,
it is a very nice presentation and concerned gst authority should take everyday oath in their office that they will help the assessee / dealers and higher authority will make clear the clouds / doubts immediately and will issue circulars so ordinary person need not to be feeled that they are victims of new laws which had happened in the matter of Central Sales Tax Act, 1956 and thousand of cases was made for items which can be purchased against form c
regards
ca kc singhal
Dated: 24-5-201

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rms) 5
Slide 4
WHY ???? GOODS AND SERVICE TAX GST introduction is to substitute the Multiple Tax structure with Single Tax structure. Change in Economic Environment (Economic Distortions) with Reduction in Transaction cost /RM/CG cost. Transaction is split into Goods & Services to provide for Taxation for each segment. GST will do away with the split off thus benefit the Industry in terms of complexity, compliance cost, etc.
Slide 5
Benefits of GST – To Whom???? Industry Public / Society Professionals Retailers All Service Providers Reduce Compliance Costs Broadening Tax Base. Reduce Tax Distortions. Increase in Employment. Increase in GDP (approx US$ 15 Billion per year.
Slide 6
Slide 7
Table
Commodity Present Tax Rates Proposed GST Rate Difference
Excise Duty VAT Total CGST SGST Total
CHEMICALS 12% 6.05% 18.05% 10% 10% 20% -1.95%
PHARMACEUTICALS 12% 6.05% 18.05% 10% 10% 20% -1.95%
SMALL PASSENGERS CARS 12% 12.50% 24.50% 10% 10% 20% 4.50%
MID SIZE CARS 24% 12.50

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make amendment in GST in relation to Inter-State transactions. Section 269A(1) allows Central Govt to levy & collect Tax on Inter State transaction & apportioned to State as defined by Parliament.
Slide 10
GST Council consisting of Union FM/ Union MOR/State FM to be formed by President within 60 days from commencement of Constitution Act GST Council Formation
Slide 11
Rates of GST for various Goods & Services Levy of Special rates For additional levy For natural calamities Types of Taxes to be subsumed Exempted List of Goods & Services Threshold Limit For Exemption GST Council Role of GST Council Any matter which council Feels important for GST
Slide 12
Who are eligible to avail “VCES-2013” ? What is GST (Goods & Service Tax ? What are the Taxes Subsumed under GST ? GST – Single Tax Structure or Multiple Rates ???? What will be happen to Present Tax Exemptions Given by State / Centre? What types of Forms are available under GST?? Persons covered under GS

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in present regime Cost in GST Regime 1% additional tax Price of Material 100.00 100.00 100.00 Total Price 90.00 90.00 90.00 CGST 10% 9.00 9.00 9.00 Total Price with CGST 99.00 99.00 99.00 IGST / CST 4% 3.96 3.96 3.96 Total Value with Taxes 102.96 102.96 102.96 Additional Tax 1% 1.03 Less : Credit of CGST 9.00 9.00 9.00 Less : Credit of IGST 3.96 0.00 3.96 Net Cost Price 90.00 93.96 91.03
Slide 15
GST vs VAT Concept of “Goods Declared of Special Importance” will have no place in GST i.e. will no longer exists. Petroleum Products will also be subject to GST but from a date to be notified. Till then the same continues to attract duty of Excise. Separate Rules for CGST & SGST. CGST will be retained by Centre and SGST by States. IGST will be levied by Centre & is sum of CGST & SGST.
Slide 16
GST – Removing Tax distortions Input Tax Credit Restricted to Inputs used in the manufacture of Finished Goods. CENVAT breaks in Value chain from Input to Finished Goods. Ca

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ng CGST and SGST. IGST Cross utilisation allowed for IGST against IGST, CGST & SGST.
Slide 20
Impact of GST on Exports & Imports Exports will be Exempted from all Centre & State Levies. Imports are subject to Levy of CGST & SGST. Benefit of SGST will be passed on to States where the goods are consumed as the principle of GST is destination based. Set off available for CSGST or SGST paid on Imports against the tax payable on finished goods
Slide 21
GST REFUNDS WORLDWIDE REFUND worldwide in case of GST regime is processed within 14 days if submitted ONLINE and within 28 days if submitted MANUALLY. REFUND State VAT in India is processed after the filing of quarterly return / Annual Return and Time Range is 4 months – 2 years. In case of Excise / Service Tax time span is 15-90 days from claim submission.
Slide 22
Compensation to States for Loss of State tax Revenues 100% Compensation to States for Loss of Tax Revenues for First 3 Years. 75% of Revenue Loss to be compensa

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another Concern area? Needs to be specified clearly as to the Tax Incidence. Dual Central GST and State GST should be calculated on the same Tax Base. List of Exempted goods under GST to be specified and items exempted under present tax structure should enjoy Exemption under GST also. Benefits available to New / Expansion Units under GST should be worked out to attract additional investment for Industrial & National Growth. Negative List of Services which are out of levy of GST should be specified. Similar Tax Treatment should exist for both Goods and Services, as differentiation leads to litigations. Common Classification of Goods and Services under both Central GST & State GST Laws . (Contd…)
Slide 26
Voice of Industry in GST Model   GST Exemption in case of supplies to SEZ, EOU and deemed Exports. All forms i.e. C form, Border Forms to be done away with as is applicable under Central Excise Laws. Uniform Tax Collection & Return Filing system for Central & State GST. Si

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den. Article 366(12A) defines GST as “ Any tax on supply of goods and services or both EXCEPT taxes on supply of alcoholic liquor for human consumption .
Slide 30
GST – Painless Taxation GST will distribute burden of Taxation equally between Manufacturing & Services. GST regime will have Lower Tax Rates and will broaden the Tax Base. Compliance Cost will be reduced. Increase in Exports & lower Prices for Consumers. GST introduction will have common market across nation due to removal of tax distortions.
Slide 31
GOODS AND SERVICE TAX – How it Operates World Wide ???
Slide 32
Industry Expectations from GST SUBSUME all taxes i.e. VAT, Purchase Tax, Mandi Tax, Rural Development fees, Octroi, Entry Tax, Stamp Duty, Electricity Duty, Cesses & Charges, Excise Duty, Customs Duty, Additional Duty of Customs, Service Tax under GST. GST Rate should range around 10 % in totality for both Central GST & State GST, if India follows Dual Model. Uniform rate of SGST acr

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Export of Goods and Services- Declaration of Exports of Goods/Software
101 Dated:- 14-5-2015 Circular
FEMA
Superseded vide A.P. (DIR Series) Circular No. 20 dated 16-01-2026 w.e.f. 01-10-2026

RBI//2014-15/599

A.P. (DIR Series) Circular No. 101

May 14, 2015

To

 All Authorised Dealers in Foreign Exchange

Madam / Sir,

Export of Goods and Services- Declaration of Exports of Goods/Software

Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No.FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, in terms of which every exporter of goods or software has to declare the same in one o

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Tax Uniformity
Query (Issue) Started By: – Deepak Agrawal Dated:- 12-5-2015 Last Reply Date:- 13-5-2015 Goods and Services Tax – GST
Got 2 Replies
GST
1.I wanted to know what is Uniformity in Tax.
2.Do people require to pay State sales tax even after VAT is in force.
3.How Tax evasion can be avoided using VAT?
4.Other than reduction in multiple indirect taxes what are other benefits of GST?
Reply By Deepak Aggarwal:
The Reply: GM,as my understanding, uniformity means there will be no difference in rates across country, only SGST or CGST rate will be in picture.In GST, people need to pay SGSTand CGST on same transaction of supply of goods or services.Tax evasion, as already explained, no diff.in rates, so no tax evasion.Majo

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GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) BILL, 2014 – AS PASSED BY LOK SABHA
GST
Dated:- 12-5-2015

THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014
A
BILL
further to amend the Constitution of India.
BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:-
Short title and commencement.
1. (1) This Act may be called the Constitution (One Hundredth Amendment) Act, 2015.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.
Insertion of new article 246A.
2. After article 246 of the Constitution, the following article shall be inserted, namely:-
Special provision with respect to goods and services tax.
&quo

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ot;, the words, figures and letter"goods and services tax provided under article 246A or" shall be inserted.
Amendment of article 250.
5. In article 250 of the Constitution, in clause (1), after the words "with respect to", the words, figures and letter "goods and services tax provided under article 246A or" shall be inserted.
Amendment of article 268.
6. In article 268 of the Constitution, in clause (1), the words "and such duties of excise on medicinal and toilet preparations" shall be omitted.
Omission of article 268A.
7. Article 268A of the Constitution, as inserted by section 2 of the Constitution (Eighty-eighth Amendment) Act, 2003 shall be omitted.
Amendment of article 269.
8. In article 269 of the Constitution, in clause (1), after the words "consignment of goods", the words, figures and letter "except as provided in article 269A" shall be inserted.
Insertion of new article 269A.
9. After article 269 of the C

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Contitution,-
(i) in clause (1), for the words, figures and letter "articles 268, 268A and 269", the words, figures and letter "articles 268, 269 and 269A" shall be substituted;
(ii) after clause (1), the following clause shall be inserted, namely:-
''(1A) The goods and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).''.
Amendment of article 271.
11. In article 271 of the Constitution, after the words ''in those articles'', the words, figures and letter ''except the goods and services tax under article 246A,'' shall be inserted.
Insertion of new article 279A.
12. After article 279 of the Constitution, the following article shall be inserted, namely:-
Goods and Services Tax Council.
''279A. (1)The President shall, within sixty days from the date of commencement of the Consti

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tax;
(b) the goods and services that may be subjected to, or exempted from the goods and services tax;
(c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply;
(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;
(e) the rates including floor rates with bands of goods and services tax;
(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;
(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
(h) any other matter relating to the goods and services tax, as the Council may decide.
(5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high s

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have a weightage of two-thirds of the total votes cast, in that meeting.
(10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of-
(a) any vacancy in, or any defect in, the constitution of the Council; or
(b)any defect in the appointment of a person as a member of the Council; or
(c) any procedural irregularity of the Council not affecting the merits of the case.
(11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendation.”.
Amendment of article 286.
13. In article 286 of the Constitution,-
(i) in clause (1),-
(A) for the words "the sale or purchase of goods where such sale or purchase takes place", the words "the supply of goods or of services or both, where such supply takes place" shall be substituted;
(B) in sub-clause (b), for the word “goods”, at both the places where it occurs the words “goods or services or both” shall be substituted;
(i

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ll be substituted.
Amendment of Sixth Schedule
16. In the Sixth Schedule to the Constitution, in paragraph 8, in sub-paragraph (3),-
(i) in clause (c), the word "and" occurring at the end shall be omitted;
(ii) in clause (d), the word "and" shall be inserted at the end;
(iii) after clause (d), the following clause shall be inserted, namely:-
"(e) taxes on entertainment and amusements.".
Amendment of Seventh Schedule.
17. In the Seventh Schedule to the Constitution,-
(a) in List I – Union List,-
(i) for entry 84, the following entry shall be substituted, namely:-
"84. Duties of excise on the following goods manufactured or produced in India, namely:-
(a) petroleum crude;
(b) high speed diesel;
(c) motor spirit (commonly known as petrol);
(d) natural gas;
(e) aviation turbine fuel; and
(f) tobacco and tobacco products.";
(ii) entries 92 and 92C shall be omitted;
(b) in List II – State List,-
(i) entry 52 shall be omitted;
(ii)

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cle 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in sub-section (2).
(2) The net proceeds of additional tax on supply of goods in any financial year, except the proceeds attributable to the Union territories, shall not form part of the Consolidated Fund of India and be deemed to have been assigned to the States from where the supply originates.
(3) The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of tax under sub-section (1).
(4) Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter-State trade or commerce.
(5) For the purpose of this section, “State” shall have the meaning assigned to it in clause (26B) of article 366 of the Constitution.
Compensati

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ing any difficulty in relation to the transition from the provisions of the Constitution as they stood immediately before the date of assent of the President to this Act to the provisions of the Constitution as amended by this Act), the President may, by order, make such provisions, including any adaptation or modification of any provision of the Constitution as amended by this Act or law, as appear to the President to be necessary or expedient for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiry of three years from the date of such assent.
(2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before each House of Parliament.
STATEMENT OF OBJECTS AND REASONS
The Constitution is proposed to be amended to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and ser

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goods and services;
(b) 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, Taxes on lottery, betting and gambling; and State cesses and surcharges in so far as they relate to supply of goods and services;
(c) dispensing with the concept of 'declared goods of special importance' under the Constitution;
(d) levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;
(e) levy of an additional tax on supply of goods, not exceeding one per cent. In the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates;
(f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax;
(g) coverage of all goods and servi

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that every decision of the Council shall be taken by a majority of not less than three-fourths of the weighted votes of the members present and voting in accordance with the following principles:-
(A) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and
(B) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast in that meeting.
Illustration:
In terms of clause (9) of the proposed article 279A, the "weighted votes of the members present and voting" in favour of a proposal in the Goods and Services Tax Council shall be determined as under:-
WT = WC+WS
Where,
WT = WC+WS × SF
Wherein-
WT = Total weighted votes of all members in favour of a proposal.
WC = Weighted vote of the Union = i.e., 33.33% if the Union is in favour of the proposal and be taken as "0" if, Union is not in favour of a proposal.
WS = Weighted votes of the States in favour of a pr

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of the Constitution of India, the introduction of the Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 in Lok Sabha and also the consideration of the Bill.
FINANCIAL MEMORANDUM
Clause 12 of the Bill seeks to insert a new article 279A in the Constitution relating to
Constitution of Goods and Services Tax Council. The Council shall function under the Chairmanship of the Union Finance Minister and will have the Union Minister of State incharge of Revenue or Finance as member, along with the Minister in-charge of Finance or Taxation or any other Minister nominated by each State Government.
2. The creation of Goods and Services Tax Council will involve expenditure on office expenses, salaries and allowances of the officers and staff. The objective that the introduction of goods and services tax will make the Indian trade and industry more competitive, domestically as well as internationally and contribute significantly to the growth of the economy, such additional expe

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Lok Sabha passes the GST Constitutional Amendment Bill with 2/3 majority
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 8-5-2015

Dear Professional Colleague,
Lok Sabha passes the GST Constitutional Amendment Bill with 2/3 majority
Amid stiff resistance followed by walk out by the Congress Members, the Lok Sabha today, on May 6, 2015 has passed the much awaited Constitutional (122nd Amendment) Bill, 2014 on Goods and Services Tax (“GST”) with 2/3rd majority.
The Hon'ble Finance Minister, Mr Arun Jaitley, has indeed been working hard for the smooth passage of the GST Constitutional Amendment Bill tabled in the last session of the Parliament in December, 2014 [calling it the “Single biggest tax reform since Independence”], but he was taken aback by the sudden vociferous stand coupled with aggressive and brisk walk-out from the House by the main Opposition Party.
As the Lok Sabha took up discussion on the GST Constitutional Amendment Bill on Tuesday, Finance Mini

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by its ratification by at least 50% of the States before it becomes law of the land.
In the Rajya Sabha, where the ruling BJP is in a minority, the Congress has said it will insist on sending the Bill to a Parliamentary committee for review. Thus, the GST Constitutional Amendment Bill is likely to face stiff opposition at the Rajya Sabha and may be routed to the Standing Committee.
Following are the salient features of the GST Constitutional Amendment Bill:
* Insertion of new Article 246A conferring simultaneous power to the Union and the State legislatures to legislate on GST.
* Insertion of new Article 279A for the creation of a Goods and Services Tax Council, which will be a joint forum of the Centre and the States. This Council would function under the Chairmanship of the Union Finance Minister.
* To do away with the concept of 'declared goods of special importance' under the Constitutional.
* Central Taxes like Central Excise Duty, Additional Excise Duties, Service Tax,

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to be levied in the interim period.
* Both Centre and States will simultaneously levy GST across the value chain. The 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.
* The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of Goods and Services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States.
* GST is a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State.
* GST rates will be uniform across the Country. However, to give some fiscal autonomy to the Centre and States, there will a provision of a narrow tax band over and above the floor rates of CGST and SGST.
* It is proposed to levy a non-vatable Additional Tax of not more than 1% on supply of goods in the course of inter-

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Com (Hons)
A2Z TAXCORP LLP
Tax and Law Practitioners
Delhi:
Flat No. 34B, Ground Floor,
Pocket – 1, Mayur Vihar Phase-1
Delhi – 110091 (India)
Tel: +91 11 22757595/ 42427056
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H. No. 908, Sector 12-A,
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Kolkata:
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Email: bimaljain@hotmail.com
Web: www.a2ztaxcorp.com
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.
Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this docum

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Incentivizing States Under GST Regime
GST
Dated:- 5-5-2015

As tax rates during Goods and Services Tax (GST) regime will be closely aligned to the Revenue Neutral Rates (RNR) of the Centre and the States, the revenues of the Central and State Governments will not be impacted in the long run. To help States in the transition phase, the Constitution (122nd Amendment) Bill, 2014, which was introduced in the Lok Sabha on 19.12.2014 for amending the Constitution to facilitate introductio

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Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2015
342/RB-2014 Dated:- 23-4-2015 Foreign Exchange Management
FEMA
Foreign Exchange Management Act
FEMA
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION NO. FEMA 342/RB-2014
Mumbai, the 23rd April, 2015
Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2015
G.S.R. 326(E).-In exercise of the powers conferred by clause (a) of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB dated May 3, 2000 as amended from time to time, Re

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ng shall be substituted, namely:-
(i) “(1) In case of exports taking place through Customs manual ports, every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars including the amount representing -”
(ii) In Regulation 6, the word “SDF”, wherever appear, shall be deleted
(iii) In the Schedule, the following shall be deleted,
“Form SDF: To be completed in duplicate and appended to the shipping bill, for exports declared to Custom

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APPENDIX 04D
LIST OF AGENCIES AUTHORISED TO ISSUE CERTIFICATION FOR GLOBAL SYSTEM OF TRADE PREFERENCES (GSTP), INDIA SRI LANKA FREE TRADE AGREEMENT (ISLFTA), CERTIFICATES OF ORIGIN UNDER ASEAN-INDIA FREE TRADE AGREEMENT INDIA – KOREA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA) INDIA-MALAYSIA COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT (IMCECA) AND INDIA-JAPAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (IJCEPA)
DGFT
Appendix
APPENDIX 04D of Foreign Trade Procedure (RE – 201

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GST – FTP Statement – Foreign Trade Policy 2015-20
News and Press Release
Dated:- 3-4-2015

GST – FTP Statement – Foreign Trade Policy 2015-20
The deadline fixed for Goods and Services tax as announced in Budget 2015 is 1st April, 2016. The same was noted in FTP statement issued for Foreign Trade policy 2015-20. The relevant extract is as below:
1) One of Domestic Challenges – Goods and Services Tax (GST)
In the absence of a uniform system of indirect taxation in India, exporte

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Export of Goods and Services – Project Exports
93 Dated:- 1-4-2015 Circular
FEMA
Superseded vide A.P. (DIR Series) Circular No. 20 dated 16-01-2026 w.e.f. 01-10-2026

RBI/2014-15/534

A.P. (DIR Series) Circular No. 93

April 1, 2015

To

All Category – I Authorised Dealer Banks

Madam/ Sir,

Export of Goods and Services – Project Exports

Attention of Authorised Dealers is invited to A. P. (DIR Series) Circular No. 11 dated July 22, 2014 in terms of which AD banks / Exim Bank have been permitted to consider according post-award approvals without any monetary limit and permit subsequent changes in the terms of post award approval within the relevant FEMA guidelines / regulations. Further, in terms of para B. 1

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Shri M.Venkaiah Naidu favours a share of GST revenue for urban local bodies
GST
Dated:- 25-3-2015

Minister of Urban Development Shri M.Venkaiah Naidu has favoured a share of GST(Goods and Services Tax) revenue for the municipalities across the country to ensure predictable and guaranteed flow of funds to enable them take up urban reconstruction initiatives. He expressed concern over the huge urban fiscal gap while addressing a 'National Workshop on Governance, Administrative Reforms and Capacity Building' here today. The Workshop was organized by the Indian Council for Research in International Economic Relations (ICRIER) with the support of the Ministry of Urban Development.
Shri Venkaiah Naidu said that the country's munici

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e-Rs.6,030
Shri Naidu expressed concern over substantial share of revenues of municipal bodies going towards payment of salaries leaving only a little for mandated functions and development activities.
The Minister emphasized that Public-Private-Partnership model is a crucial vehicle for mobilizing huge order of resources required for building smart cities and bridging the huge infrastructure deficit in other urban areas. Shri Naidu observed that the success of PPP in India is associated with projects that are technically simple, have small gestation periods and allow easy estimation of costs but PPP is needed more in the more complex infrastructure projects and this shall be made a success through good governance and institutional framew

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Cord Wire Classified as “Electronic Goods” Under Tamil Nadu General Sales Tax Rules, Not “Electrical Goods.
Case-Laws
VAT and Sales Tax
Classification of Cord wire – Electronic good or Electr

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Centre includes compensation in GST Constitutional Amendment Bill
GST
Dated:- 19-3-2015

The Centre has included in the GST Constitutional Amendment Bill the compensation which will be paid to states for revenue loss on account of rolling out the new indirect tax regime, Parliament was informed.
To a written question on whether the compensation in GST has been incorporated in the Constitutional Amendment Bill, Minister of State for Finance Jayant Sinha said: "Yes".
Elaborating further, he said that as per the provisions of the Bill, Parliament may on the "recommendation of the GST Council, provide for compensation to the states for loss of revenue arising on account of implementation of the GST for such period

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Budget 2015 – essential goods and services must be exempted from taxes for poor people and subsidies must be only for poor people.
By: – DEVKUMAR KOTHARI
Budget – Tax Proposals
Dated:- 4-3-2015

The budget 2015 has given benefit for poor people by way of common pools and not directly. Any person whether poor or rich has to pay taxes similarly for many essential items for consumption or services. This is not justified.
Taxes must be according to capacity to pay:
The well-known cannon of taxation is that tax must be according to capacity to pay. Therefore, there must be some regard and relaxation for essential goods and services.
Some common items becoming costlier or cheaper for common and other people.
Bhojan and essentials for living -commonly known Roti, kapra aur makan:
Essential goods and services are equally important for poor and rich. Therefore, there must be some regard for poor people.
The quantity and quality are important factors. A poor man consumes man

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you will have to pay more for
Smoking and consumption of other tobacco items will be more expensive,
Good for society as a whole – for better health and environment. Less use of tobacco for smoking will reduce carbon emission also. However, considering that tobacco is an essential item for many poor people also,- they must get some concession.
All services becoming costlier
For poor people there must be some exemption on essential services. For example telephone , mobile phone, internet bill up to ₹ 300/- per month can be exempted.
Similar concessions must be be given for other items of essential nature.
Completely built imported commercial vehicles.
Cement
For affordable housing some concession must be given – area wise or for first time small house at least.
Aerated, flavoured drinks and packaged water
Packaged water must be exempted, it is essential. On many railway stations, bus stops we do not find good quality water for drinking.
Aerated, flavoured drinks can b

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anels, LED lights and LED Lamps
The government authorities must also take care to see that quality of such goods improves and one has to be satisfied with made in India product, of “top class quality good”.
Solar Water heater
Pacemakers
Mal practices in medical services to implant pacemakers even when not necessary msut be curbed.
Ambulance
Not only chassis, other parts of ambulance must also be made cheaper.
Ambulance services
It is an essential services – must get full exemption.
Computer tablets
Agarbattis
Agarbattis are made of artificial scents and are not good for health. They pollute environment. So only small size of agarbatti should get exemption.
Smoke of dhoop, dhoop batti is also not good for enviornment. The smoke is smoke it causes carbon , gas and heat emission.
Microwave ovens
Not affecting poor people.
Refrigerator compressors
Not affecting poor people.
Peanut butter, packaged fruits and vegetables
Essentials like vegetables must be fully exempted.

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me aware of disclaimer option for subsidy I requested , my wife CA Uma Kothari and my daughter Dr. Shweta Kothari -Singla, (both are subscribers for LPG cylinder in their names) and both have disclaimed subsidy in their subscribers accounts. In my articles, I have appealed to readers who are professionals and well to do and can forgo subsidy. I spoke to some other professionals and executive, but I found response not very encouraging.
Therefore, it is very difficult to have voluntary disclaimer of subsidy. As suggested by me in my articles the disentitlement must be compulsory for people living in Pucca houses (a standard can be prescribed) and those having income above certain limit.
Let us hope that appeal of honorable FM is considered and our MP's disclaim voluntarily subsidy on LPG cylinders. As per my feeling even servants working in pucca houses must not be entitled for such subsidy because the cooking fuel is provided by the employer.
It is unfortunate that many rich people a

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GST in Budget 2015
By: – Deepak Aggarwal
Goods and Services Tax – GST
Dated:- 2-3-2015

Goods and Services Tax (GST)
Here are the relevant extract of GST reference in Budget speech 2015 and other budget documents –
* We are now embarked on two more game changing reforms. GST and what the Economic Survey has called the JAM Trinity – Jan Dhan, Aadhar and Mobile – to implement direct transfer of benefits. GST will put in place a stateof-the-art indirect tax system by 1st April, 2016. The JAM Trinity will allow us to transfer benefits in a leakage-proof, well-targetted and cashless manner.
* We need to revive growth and investment to ensure that more jobs are created for our youth and benefits of development reach millions of our poor. We need an enabling tax policy for this. I have already introduced the Bill to amend the Constitution of India for Goods and Services Tax (GST) in the last Session of this august House. GST is expected to play a transformative role in th

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ing made to excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and certain other tobacco products.
* Introduction of GST is eagerly awaited by Trade and Industry. To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%.
* Hassle Free Business Environment: Created a non-adversarial tax regime, ending tax terrorism; Secured the political agreement on the goods and services tax (GST), that will allow legislative passage of the constitutional amendment bill.
The debate whether to introduce a Goods and Services Tax (GST) must now come to an end. We have discussed the issue for the past many years. Some States have been apprehensive about surrendering their taxation jurisdiction; others want to be adequately compensated. I have discussed the matter with the States both individually and c

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l provide a scope for achieving the budget targets in FY 2015-16 14. In the medium term, the most significant step from the point of view of broadening the tax base and improving revenue efficiency through better compliance is the introduction of Goods and Services Tax (GST). As far as Central taxes viz. Central Excise duties and Service Tax are concerned, a fair amount of integration has already been achieved, especially through the cross-flow of credits across the two taxes. It would be possible to realize full integration of the taxation of goods and services only when the State VAT is also subsumed and a full-fledged GST is launched. As a preparation for introduction of Goods and Service Tax (GST), Government has been taking consistent policy steps to expand the scope of service tax. To broaden the tax base, negative list approach to taxation of services was introduced with effect from 1st July, 2012. Negative List of Services and service tax exemptions were reviewed for broadening

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Corporate Tax to be Reduced and GST to be Implemented
Budget
Dated:- 28-2-2015

The Finance Minister Shri Arun Jaitley has said that the Corporate Tax Rate is proposed to be reduced from the current 30% to 25% over the next 4 years. In his Budget Speech in the Lok Sabha here today, Shri Jaitley said this is expected to lead to higher level of investment, higher growth and more jobs. The Minister however said that the reduction has to be accompanied by rationalization and removal of various kinds of exemptions and incentives which is leading to a large number of tax disputes. He pointed out that the effective collection of Corporate Tax today is about 23%.
The Finance Minister said he did not start the process of reduction rig

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Citizens Charter- Implementation of Sevottam
GST TRADE NOTICE NO. 52/2017 Dated:- 27-2-2015 Trade Notice
GST
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY COMMISSIONERATE
GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001
Dated: 27-02-2015
GST TRADE NOTICE NO. 03/2015
Subject: Reg.
Central Board of Excise & Customs (CBEC) is committed to encourage, facilitate and assist its existing assessees to voluntarily discharge their tax obligation and to provide them service necessary in meeting these obligations. CBEC is also committed to discharge all its functions in a fair, impartial, transparent and consistent manner. The Government of India has authorized CBEC to implement "Service Delivery Excellence Model" SEV

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ii. Convey decision on matters within 15 days,
iii. Release of seized documents within 60 working days if they are not required by the department,
iv. Acknowledge complaints within 48 hours and attempt to provide final replies within 30 working days.
3 Citizens / Clients / Trade are advised to submit all written communications including intimations, applications, declarations, etc pertaining to Head Quarters Office, Puducherry Commissionerate in Centralized receipt section(Common Facility Centre) at the O/o the Commissioner of Central Excise & Service Tax, Beach Road, Goubert Avenue, Puducherry – 605001 and obtain dated spot acknowledgement Additionally, online facilities for submitting public grievances are available on the followin

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Court Classifies Image Runners as Computer Peripherals, Taxed at 4% Under Entry 18(i) of TNGST Act.
Case-Laws
VAT and Sales Tax
Classification of goods – Levy of tax on Image Runners @4% or @

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Pard D- First discussion paper on GST- Segment 4 (last)
By: – Deepak Aggarwal
Goods and Services Tax – GST
Dated:- 7-2-2015

GST……Goods and Services Tax
Part-D
First Discussion Paper on GST
* Fourth Segment (annexure) has twenty (20) Frequently Asked Questions and Answers (FAQ) on GST.
* 1st Question- Justification of GST- already covered in earlier articles. In net shell, GST is not simply VAT plus Service tax but a major improvement over the previous current system.
* 2nd Question- Meaning of GST and its working model- already covered in earlier articles. In net shell, GST is a tax on goods and services in which final consumer will be charged only GST charged by the last dealer. There will be no double taxation and tax on tax impact anywhere in supply chain.
* 3rd Question- Logic that GST will reduce the burden of tax, in general- already covered in earlier articles. In net shell, there will be no cascading effect of taxes on goods and services.

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of small traders. Also a composition scheme for small traders and businesses is also suggested in GST model.
* 7th Question- Benefits of GST to the common consumers- Already explained in 3rd Question. In general, burden of tax on goods would fall under GST and would benefit the consumers.
* 8th Question- Salient features of the proposed GST model- Already covered in earlier articles. In net shell, GST will be charged on all goods and services except exempted goods and services. There will be dual GST. One will be charged by the central in the form of CGST and second concurrently will be charged by the States in the form of SGST. For interstate sale, IGST mechanism is introduced. Cross utilization of input tax credit between the CGST and SGST will not be allowed. Each taxpayer will be allotted a PAN linked tax payer identification number with a total of 13/15 digits.
* 9th Question- Requirement of Dual GST- Due to constitutional requirement of fiscal federalism, dual GST model is

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cious metal and a list of exempted items is also suggested.
* 13th Question- Concept of providing threshold exemption for GST- Threshold exemption is provided to keep small traders out of tax net. Also Small traders get advantage over large enterprises on account of lower tax. Same time it is difficult to administer small traders and cost of administering of such traders is very high in comparison to revenue contribution by them.
* 14th Question- Scope of Composition and Compounding scheme- The Composition/ Compounding scheme under GST will have an upper ceiling on gross annual turnover and a floor tax rate. Limit of ₹ 50 lacs of the gross annual turnover and 0.5% floor tax rate is recommended in GST model. Also optional registration will be allowed for the dealers with turnover below the compounding cutoff.
* 15th Question- Mechanism of taxation of Imports under GST- A constitutional amendment is required for taxation of imports. Both CGST and SGST will be levied on import

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utional amendment for introduction of GST- Our Constitution empowered the Central government to tax services and goods up to the stage of production i.e. up to manufacturing level and the State government to tax on the sale of goods. The constitution does not vest express power to levy a tax on the supply of goods and services either to the Central government or to the State government. Also constitution does not empower the states to impose tax on imports.
* 19th Question- Legislative steps being taken for CGST and SGST- A joint working group consisting the officials of Central and State government has constituted to draft legislation for constitutional amendment.
* 20th Question- Framing of rules for administration of CGST and SGST- The joint working group has also been entrusted the task of preparing draft legislation for CGST, SGST and IGST including rules and procedures. It will also address the issues of dispute resolution and advance ruling.
* Happy Voting Delhi…&h

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Part C- First Discussion Paper on GST-2nd & 3rd Segment
By: – Deepak Aggarwal
Goods and Services Tax – GST
Dated:- 7-2-2015

GST……Goods and Services Tax
Part-C
First Discussion Paper on GST
* Second Segment explains the process of preparation for GST which is already covered in my first article- Part-A.
* Third Segment explains in detail the comprehensive structure of the GST model in India.
* India is country which have a federal system in which Centre and State both have powers in their domain and legislation in which they operate.
* Due to federal system, a Dual GST structure is recommended in India.
* In Dual GST structure, Central and State will have pre-defined functions and responsibilities.

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payable. For SGST a threshold limit of ₹ 10 lacs for both goods and services is suggested across all states. In case of CGST, threshold limit suggested for goods is ₹ 1.5 crore and in case of services, a higher limit is desirable.
* The CGST and SGST will be paid separately to accounts of Central and state government respectively.
* The CGST and SGST will be treated separately. In books of accounts, there will be separate accounts for the utilization or refund of credit.
* Cross utilization of Input tax credit (ITC) between the CGST and SGST will not be allowed.
* The Central government and State government would have concurrent jurisdiction in GST model. CGST will be administered by Central government and SGST will be

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y Central GST authorities and in case of SGST, will be done by State GST authorities.
* In GST regime, various Central Taxes and State Taxes will be subsumed in GST.
* Central Taxes subsumed in GST are Central Excise duty, Additional Excise duties, Excise duty levied under MTP Act, Service Tax, Additional Custom duty (CVD), Special additional duty (SAD), Surcharges and Cesses.
* State Taxes subsumed in GST are VAT/Sales tax, Entertainment tax, Luxury tax, Taxes on lottery, betting and gambling, State Cesses and Surcharges related to supply of goods and services and Entry tax. Regarding Purchase tax, it is not clear that whether it will be subsumed in GST or not.
* Some specific provisions for specific commodities are also suggested.

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Part B- First Discussion Paper on GST- 1st Segment
By: – Deepak Aggarwal
Goods and Services Tax – GST
Dated:- 6-2-2015

GST……Goods and Services Tax
Part-B
First Discussion Paper on GST- 1st Segment
* First Segment of First Discussion Paper on GST explains a brief reference to the process of introduction of VAT in the Centre and in the States and also areas where needs further improvements i.e. justification for GST.
Introduction of VAT
* In India, VAT was introduced at the Central level for a selected number of commodities in terms of MODVAT w.e.f March, 1986 and later it is extended to all commodities in terms of CENVAT w.e.f. 2002-03.
* Later on Service tax was added to CENVAT w.e.f. 2004-05.
* Vat

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ate level have some shortcomings.
Shortcomings- at Central level
– Non-inclusion of several Central taxes e.g. additional customs duty, surcharges etc.
– Non-inclusion of value added chain in the distribution trade below the manufacturing level
Shortcomings- at State level
-Non-inclusion of several state taxes e.g. luxury tax, entertainment tax etc.
-Cascading effect on account of Cenvat element i.e. excise duty on the goods remains included in the value of goods to be taxed under state VAT
– No credit of input services at state level
* After introduction of GST, all shortcomings at Central and State level will be removed.
At Central level
-GST will provide comprehensively more indirect central taxes
-Integrate goods and service

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