The Finance Minister of India on
14.06.2016 has published and made available on public domain the draft model of
GST. In his opinion, most of the States except Tamil Nadu has expressed assent
on the implementation and adoption of GST.
(c) the date on which the supplier receives the payment with respect to the supply; or
(d) the date on which the recipient shows the receipt of the goods in his books of
account.
(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or (b) do not apply.
(2) The transaction value under sub-section(1) shall include:
(a) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply
The GST Act Law is distributed in
25 Chapters and 1 Rule which are as follows :
GOODS AND SERVICES TAX ACT, 2016
CHAPTER – I
PRELIMINARY
CHAPTER– II
ADMINISTRATION
CHAPTER– III
LEVY OF, AND EXEMPTION FROM, TAX
CHAPTER- IV
TIME AND VALUE OF SUPPLY
CHAPTER– V
INPUT TAX CREDIT
CHAPTER– VI
REGISTRATION
CHAPTER – VII
TAX INVOICE, CREDIT AND DEBIT NOTES
CHAPTER– VIII
RETURNS
CHAPTER– IX
PAYMENT OF TAX
CHAPTER– IXA
TRANSFER OF INPUT TAX CREDIT
CHAPTER-X
REFUNDS
CHAPTER– XI
ACCOUNTS AND RECORDS
CHAPTER– XIA
JOB WORK
CHAPTER– XIB
ELECTRONIC COMMERCE
CHAPTER– XII
ASSESSMENT
CHAPTER– XIII
AUDIT
CHAPTER– XIV
DEMANDS AND RECOVERY
CHAPTER– XV
INSPECTION, SEARCH, SEIZURE AND ARREST
CHAPTER– XVI
OFFENCES AND PENALTIES
CHAPTER– XVII
PROSECUTION AND COMPOUNDING OF OFFENCES
CHAPTER–XVIII
APPEALS
CHAPTER– XVIII
APPEALS AND REVISION
CHAPTER– XIX
ADVANCE RULING
CHAPTER– XX
SETTLEMENT OF CASES
CHAPTER– XXI
PRESUMPTION AS TO DOCUMENTS
CHAPTER- XXII
LIABILITY TO PAY IN CERTAIN CASES
CHAPTER– XXIII
MISCELLANEOUS PROVISIONS
CHAPTER– XXIV
REPEAL AND SAVING
CHAPTER– XXV
TRANSITIONAL PROVISIONS
RULES
1. GST Valuation (Determination of the Value of supply of Goods and Services)
Rules, 2016
1.
GST
Act applies to whole of India
Some
Terminologies:
zero-rated
supply” means a supply of any goods and/or services on which no
tax is payable but credit of the input tax related to that supply is admissible;
Explanation.- Exports shall be treated as zero-rated supply.
tax is payable but credit of the input tax related to that supply is admissible;
Explanation.- Exports shall be treated as zero-rated supply.
2. Levy of GST:
The
Central GST(CGST) and State GST (SGST) shall be levied on all inter-state
supplies of goods/services
3.
Composition
Scheme will be available to person whose turnover does not exceed Rs. 50 lacs.
The tax rate for the same will be more than 1% of the Turonver during the year.
Composition Scheme not applicable to persons dealing in Inter-State
transactions.
4.
Taxable
Person: Any person carrying on any business whose aggregate turnover exceeds
Rs. 10 lacs during a financial year. An Agriculturist will not be considered as
Taxable Person.
5.
Time and
Value Of Supply: The liability to pay CGST/SCGST will be at the time of supply of Goods/Services.
6.
Time of
Supply of GOODS explained: It will be earliest of the following:
(a)
(i) the date on which the goods are
removed by the supplier for supply to the
recipient, in a case where the goods are required to be removed or
(ii) the date on which the goods are made available to the recipient, in a case where the goods are not required to be removed; or
(b) the date on which the supplier
issues the invoice with respect to the supply; orrecipient, in a case where the goods are required to be removed or
(ii) the date on which the goods are made available to the recipient, in a case where the goods are not required to be removed; or
(c) the date on which the supplier receives the payment with respect to the supply; or
(d) the date on which the recipient shows the receipt of the goods in his books of
account.
7.
Time of
Supply of SERVICES explained:
(a)
the date of issue of invoice OR the date of receipt of payment, whichever is
earlier, if the invoice is issued
within the prescribed period; OR
(b) the date of completion of the provision of service OR the date of receipt of payment, whichever is earlier, if the invoice is not issued within the prescribed period; OR
(b) the date of completion of the provision of service OR the date of receipt of payment, whichever is earlier, if the invoice is not issued within the prescribed period; OR
(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or (b) do not apply.
8.
Value of
Taxable Supply i.e . amount on which GST is to be paid:
(1)
The
value of a supply of goods and/or services shall be the transaction value, that is the price actually paid or payable for
the said supply of goods and/or services.
(2) The transaction value under sub-section(1) shall include:
(a) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply
(b) the
value, apportioned as appropriate, of such goods and/or services as are supplied
directly or indirectly by the recipient of the supply free of charge or at reduced cost for use in connection with
the supply of goods and/or services being valued
(c)
royalties and licence fees related
to the supply of goods and/or services being valued that the recipient of
supply must pay, either directly or indirectly
(d)
any taxes, duties, fees and charges
levied under any statute other than the SGST Act or the CGST Act or the IGST
Act;
(e)
incidental expenses, such as, commission
and packing, charged by the supplier to the recipient of a supply,
including any amount charged for anything done by the supplier in respect of
the supply of goods and/or services at the time of, or before delivery of the
goods or, as the case may be, supply of the services;
(f)
subsidies provided in any form or
manner, linked to the supply;
(g)
any reimbursable expenditure or cost
incurred by or on behalf of the supplier and charged in relation to the supply
of goods and/or services;
(h)
any discount or incentive that may
be allowed AFTER the supply has been
effected
9.
Input
Tax Credit (ITC):
a.
Only
a registered taxable person can avail Input Tax Credit
b.
The
ITC cannot be claimed after one year of date of Invoice
10.
ITC
shall not be allowed on following
goods/services:
(a) motor vehicles, except when they are
supplied in the usual course of business or are used for providing the
following taxable services—
(i) transportation of passengers, or
(ii) transportation of goods, or
(iii) imparting training on motor driving skills;
(b) goods and / or services provided in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as leave or home travel concession, when such goods and/or services are used primarily for personal use or consumption of any employee;
(c) goods and/or services acquired by the principal in the execution of works contract
when such contract results in construction of immovable property, other than plant and machinery;
(d) goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery;
(e) goods and/or services on which tax has been paid under section 8; and
(f) goods and/or services used for private or personal consumption, to the extent they are so consumed.
(i) transportation of passengers, or
(ii) transportation of goods, or
(iii) imparting training on motor driving skills;
(b) goods and / or services provided in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as leave or home travel concession, when such goods and/or services are used primarily for personal use or consumption of any employee;
(c) goods and/or services acquired by the principal in the execution of works contract
when such contract results in construction of immovable property, other than plant and machinery;
(d) goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery;
(e) goods and/or services on which tax has been paid under section 8; and
(f) goods and/or services used for private or personal consumption, to the extent they are so consumed.
11.
Goods including
tax , on which depreciation is claimed under Income Tax Act, ITC will not be
allowed.
12.
Registration: A person needs to apply for
Registration within 30 days from the date on which he is required to take
registration. No fresh registration required to persons already registered
under earlier law. A person may apply
voluntarily also. A Unique Identity Number will be allotted to a person
successfully registered
13.
Permanent
Account Number issued under Income tax Act is compulsory to avail registration
under GST Act
14.
A
Non-Resident taxable person is also allowed to apply for GST Registration
15.
Tax Invoice:
A Tax Invoice relating to Goods shall include description, quantity and value
of goods, the tax charged thereon.
16.
GST Returns:
Every Registered taxable person is required to furnish efiled GST Inward and Outward Supplies Return within
10th of the month succeeding the tax period. In case of error, the Return can be rectified.
The rectification can be done for the Return filed for the period till September,
till the end of Financial Year or filing of Annual Return, whichever is
earlier.
17.
A person
will not be able to file a Return if a valid Return is not filed for any
previous period
18.
Nil Return
to be filed compulsorily even if there are no transactions in the tax period
19.
Except persons
registered under section 8 of the GST law, the Returns need to be filed on
monthly basis by 20th of the next month. Section 8 registered
persons need to file Return on Quarterly basis and by 18th of the
next month in which Quarter ends.
20.
Annual Return: An Annual Return needs to be
filed by 31st December after the Financial year ends. The Annual
Return will be accompanied with audited financials of the person whose Audit of
the Books needs to be done u/s 42(4).
21.
Late Fee: The penalty for non-compliance
relating to filing of Regular Returns is Rs.100 per day subject to Rs.5,000/-
maximum. Non-compliance relating to Annual Return attracts Rs.100 per day subject
to 25% of the Total Turnover.
GOODS AND SERVICES TAX ACT, 2016
CHAPTER – I
PRELIMINARY
CHAPTER– II
ADMINISTRATION
CHAPTER– III
LEVY OF, AND EXEMPTION FROM, TAX
CHAPTER- IV
TIME AND VALUE OF SUPPLY
CHAPTER– V
INPUT TAX CREDIT
CHAPTER– VI
REGISTRATION
CHAPTER – VII
TAX INVOICE, CREDIT AND DEBIT NOTES
CHAPTER– VIII
RETURNS
CHAPTER– IX
PAYMENT OF TAX
CHAPTER– IXA
TRANSFER OF INPUT TAX CREDIT
CHAPTER-X
REFUNDS
CHAPTER– XI
ACCOUNTS AND RECORDS
CHAPTER– XIA
JOB WORK
CHAPTER– XIB
ELECTRONIC COMMERCE
CHAPTER– XII
ASSESSMENT
CHAPTER– XIII
AUDIT
CHAPTER– XIV
DEMANDS AND RECOVERY
CHAPTER– XV
INSPECTION, SEARCH, SEIZURE AND ARREST
CHAPTER– XVI
OFFENCES AND PENALTIES
CHAPTER– XVII
PROSECUTION AND COMPOUNDING OF OFFENCES
CHAPTER–XVIII
APPEALS
CHAPTER– XVIII
APPEALS AND REVISION
CHAPTER– XIX
ADVANCE RULING
CHAPTER– XX
SETTLEMENT OF CASES
CHAPTER– XXI
PRESUMPTION AS TO DOCUMENTS
CHAPTER- XXII
LIABILITY TO PAY IN CERTAIN CASES
CHAPTER– XXIII
MISCELLANEOUS PROVISIONS
CHAPTER– XXIV
REPEAL AND SAVING
CHAPTER– XXV
TRANSITIONAL PROVISIONS
RULES
1. GST Valuation (Determination of the Value of supply of Goods and Services)
Rules, 2016
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