GST Laws Manual – Acts, Rules and Forms by Bloomsbury India Professional

Table of contents PART A: GST in India â&#x20AC;&#x201C; At a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-50 PART B: GST Acts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51-430 1. Amended/Inserted Articles by the Constitution (101st Amendment) Act, 2016. . . . 53 2. The Central Goods and Services Tax Act, 2017 (CGST Act) . . . . . . . . . . . . . . . . . 63 3. The Integrated Goods and Services Tax Act, 2017 (IGST Act). . . . . . . . . . . . . . . 215 4. The Union Territory Goods and Services Tax Act, 2017 (UGST Act). . . . . . . . . . 241 5. The Goods and Services Tax (Compensation to States) Act, 2017. . . . . . . . . . . . 263 6. The State Goods and Services Tax Act (Rajasthan SGST Act). . . . . . . . . . . . . . . 277 PART C: Revised Draft GST Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431-526 1. Registration Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 2. Return Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 3. Determination of value of supply Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 4. Payment of taxes Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 5. Tax Invoice, Credit and Debit Notes Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 6. Electronic Way Bill Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 7. Transitional Provisions Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483 8. Input Tax Credit Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 9. Composition Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 10. Refund Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503 11. Assessment and Audit Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 12. Accounts and Records Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 13. Advance Ruling Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 14. Appeals and Revision Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 PART D: Draft GST Forms & Formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527-756 1. Registration Formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 2. Invoice Format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 3. Payment Formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 4. Return Formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613 5. Refund Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737 PART E: Frequently asked questions (FAQs) issued by CBEC on 31st March 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757-898

Part A GST in India â&#x20AC;&#x201C; At a glance

GST Laws Manual: Acts, Rules and Forms

GST in India – At a glance

With the passing of Rajasthan GST Act, which is based upon the Model SGST Act released by the GST Council on 31 March 2017 with suitable changes, by the State Assembly, it has been observed that SGST Act is almost a mirror image of the CGST Act, 2017 as enacted on 12 April 2017; as also stated by the Hon’ble Finance Minister of India in his speech. Therefore, in this Chapter, sections of CGST Act and SGST Act have been referred as section of GST Act, unless separate reference of sections in CGST Act and SGST Act is otherwise required.

1 1. 2. 3.

4. 5.

GST – Meaning and its scope

The term “GST” stands for “Goods and Services Tax”, and is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to cover most of the indirect tax levies into a single tax, replacing multiple tax levies, overcoming the limitation of current indirect tax structure, and creating efficiencies in the tax administration. GST may be defined as a tax on supply of goods and services, which is leviable at each point of sale of goods or provision of service, where the seller of the goods or provider of services may claim the credit of input tax which he has paid while purchasing the goods or procuring the services. GST will bring in its scope all goods and services, except alcoholic liquor for human consumption, for levy of GST. GST on the supply of following goods shall be levied with effect from such date(s) as may be notified by the Government on the recommendations of the Council − Petroleum crude, − High speed diesel, − Motor spirit (commonly known as petrol), − Natural gas, and − Aviation turbine fuel. It extends to whole of India except Jammu and Kashmir.

GST Laws Manual: Acts, Rules and Forms

2 1.

2. 3.

Legislative Framework

The Constitution (101stAmendment) Act, 2016 has conferred concurrent taxing powers on the Union as well as the States (including Union territory with Legislature) to make laws for levying GST on every transaction of supply of goods or services or both. Parliament has exclusive power to make laws with respect to GST where the supply of goods, or of services, takes place in the course of inter-State trade or commerce. In accordance with Art.279A of the Constitution of India, the President has constituted the Goods and Services Tax Council (GST Council, in short) on 15th September 2016 with the following members: (a) The Union Finance Minister … Chairperson (b) The Union Minister of State in charge of Revenue or Finance … Member (c) The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government … Members The GST Council shall make recommendations to the Union and the states on, inter-alia, following matters (i) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which maybe subsumed under GST; (ii) the goods and services that may be subjected to or exempted from the GST; (iii) the date on which the GST shall be levied on petroleum crude, high speed diesel, motor sprit (commonly known as petrol), natural gas and aviation turbine fuel; (iv) model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply; (v) the threshold limit of turnover below which the goods and services may be exempted from GST; (vi) the rates including floor rates with bands of GST; Name of legislation and controlling authority

Name of the legislation Central GST Act

To be administered Scope of taxation by

Central Government Every supply of goods and/or services within State GST Act, e.g., Delhi GST Respective State the state/UT, i.e. IntraAct, U.P. GST Act, Haryana GST Government state supplies Act, Kerala GST Act, and so on

GST in India – At a glance

Name of the legislation

To be administered Scope of taxation by

UT GST Act

Central Government

IGST Act

Central government

There would be uniformity in various SGST Acts and the CGST Act. With the passing of Rajasthan GST Act, which is based upon the Model SGST Act released by the GST Council on 31 March 2017 with suitable changes, by the State Assembly, it has been observed that SGST Act is almost mirror image of the CGST Act, 2017 as enacted on 12 April 2017; as also stated by the Hon’ble Finance Minister of India in his speech.

3 CGST/SGST 1. 2. 3.

Inter-state supplies

Taxable event and charging provisions Sec 9

IGST

Sec 5

CGST and SGST shall be levied on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption and specified petroleum products. IGST shall be levied on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption and specified petroleum products. GST on reverse charge basis • The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the CGST/SGST/IGST on which shall be paid on reverse charge basis by the recipient of such goods or services or both. The GST in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient. Specified e-commerce operators – Deemed suppliers The Government may, on the recommendations of the Council, by notification, specify categories of services, the tax on supplies of which shall be paid by the electronic commerce (e-commerce, in short) operator, if such services are supplied through it, as if he is the supplier liable for paying the tax in relation to the supply of such services. These provisions are similar to present provisions applicable under the service tax where the aggregator, such as, Uber, Ola, etc., are, instead of the individual service provider, deemed as supplier of service. •

GST Laws Manual: Acts, Rules and Forms

Levy of compensation cess •

The Goods and Services Tax (Compensation to States) Act, 2017 (Compensation Cess Act, in short), provides for payment of compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of 5 years.

•

Compensation cess will be levied on all inter-state and local supply of goods or services or both. Cess shall be levied on the specified goods and the rates stated in Schedule to the Act, which mainly comprises pan masala, tobacco and its products, coal, specified motor cars and aerated waters.

•

4 1.

4. 5.

Rates of GST, Import & Export

As per Art. 279A of the Constitution of India, the GST Council shall make recommendations to the Union and the States on (a) goods and services that may be subjected to, or exempted from GST; (b) rates including floor rates with bands of GST; (c) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster. Rate of GST GST shall be levied at such rates, as may be notified by the government on the recommendations of the Council. However, maximum rates would be as under: − CGST – 20% − SGST – 20% − IGST – 40% Expected GST Rates – (a) In relation to supply of goods, in the third meeting of the GST Council, it has been decided that there would be five tier rate structure for supply of goods – 5%, 12%, 18%, 28%, 40%. Further, there might be special rate for bullion. Nevertheless, there would be separate list of exempted goods. (b) In relation to services, there might be three-tier rates: lower-standard, standard and luxury, besides exempted services. HSN (Harmonized System of Nomenclature) codes shall be used for classifying the goods under the GST regime and SAC (Service Accounting Codes) for services Import of goods and services would be treated as inter-state supplies and would be subject to IGST in addition to the applicable customs duties (BCD). This IGST would be levied in lieu of CVD and SAD; and shall be available as input tax credit for further transactions.

GST in India – At a glance

IGST on goods imported into India shall be levied and collected in accordance with the provisions of sec 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under sec 12 of the Customs Act, 1962. Zero-rated supply • As per sec 2(24) of the IGST Act, zero-rated supply shall have the meaning assigned to it under sec 16 of the IGST Act.

•

As per sec 16 of the IGST Act, zero rated supply” means any of the following taxable supply of goods and/or services, namely: (a) export of goods and/or services or both; or (b) supply of goods and/or services or both to a SEZ developer or an SEZ unit.

5 5.1

Exemptions and exempt supplies

Power to grant exemption CGST/SGST

Sec 11

IGST

Sec 6

(1)

By way of Notification: Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.

(2)

By way of special order in exceptional cases: Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.

(3)

Explanation to notification or special order already issued: The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification of exemption or special order issued, insert an Explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification/order. Every such Explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

GST Laws Manual: Acts, Rules and Forms

6 6.1 1. 2.

3. 4. 5.

Meaning and Scope of the term “Supply”

Scope of supply (Section 7 & 8 of GST Act) Supply includes all forms of supply (goods and/or services) and includes agreeing to supply such as, sale, transfer, barter, exchange, license, rental, lease, or disposal. Supply should be made for a consideration; and in the course or furtherance of business. However, in case of import of services, even ‘in the course or furtherance of business’ is not required. Thus, there should be something in return which the person supplying will obtain from recipient. It is not important that what is received in return is ‘money’; it can be money’s worth. It involves delivery of goods and / or services to another person or agreement thereof. Transfer of property in goods from the supplier to recipient is not necessary. Branches of the same person have been considered as distinct persons. Multi-State Entities have to take care of transfer value. Certain supplies which are even without consideration have also been included in the definition of the term “Supply”, as specified in Schedule I of CGST/SGST Act, as under: (a) Permanent transfer/disposal of business assets where input tax credit has been availed on such assets. For example, transfer of business asset by the partnership firm to its retiring partner in settlement of his dues. (b) Supply of goods and/or services between related persons when made in the course or furtherance of business, (c) Supply of goods or services between distinct persons as specified in section 25 (from one unit to another, both having same PAN) when made in the course or furtherance of business. (d) Supply of goods or services or both by way of gifts exceeding INR 50,000/- in value in a financial year by an employer to an employee. (e) Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal. (f) Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal. (g) Import of services by a taxable person from a related person or from his other establishments outside India, in the course or furtherance of business.

GST in India – At a glance

6. 7. 8. 6.2 • •

• •

Schedule II of GST Act comprises various circumstances and situations when the activity shall be considered as supply of goods or as service. Schedule III comprises various activities or transactions, which shall neither be considered as supply of goods nor as services. The GST Act has also defined composite supply and mixed supply and manner of determining their tax liability. Inter-State supply vs. Local Supply and Place of Supply (Section 7 to 13 of IGST Act) IGST Act formulates the principles when a supply of goods or services or both shall be treated as inter-state supply or intra-state (local) supply. Generally, subject to other provisions in respect of place of supply, where “location of the supplier” and “place of supply” are in different states/UT, it is inter-state supply; and if within the same state or union territories, it is local supply. Local supply shall be subject to CGST + SGST; whereas inter-state supply shall be subject to IGST. Framework of Place of Supply provisions: Place of supply of goods

Place of supply of services

Section 10: Goods other than supply Section 12: Services where the location of goods imported into, or exported of supplier of service and the location of from India the recipient of service is in India Section 11: Goods imported into, or Section 13: Services where the location exported from India of the supplier or the location of the recipient is outside India

6.3 1.

Time of supply (Section 12 & 13 of GST Act) In case of supply of goods (other than taxable on reverse charge), time of supply (i.e. taxable event) shall generally be earliest of the following: (a) Date of issuance of invoice by the supplier; (b) Last date on which supplier is required to issue invoice in terms of sec 31; (c) Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in bank).

GST Laws Manual: Acts, Rules and Forms

6.4 (i)

In case of supply of services (other than taxable on reverse charge), time of supply (i.e. taxable event) shall be: (a) If the invoice issued under sec 31(2) is – (i) Within time: Earliest of date of issuance of invoice OR Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in bank); (ii) Not within time: Earliest of date of provision of service OR Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in bank); (b) Other cases: date on which the recipient shows the receipt of services in his books of account. In case of supply of goods/services on reverse charge basis, time of supply shall generally be earliest of the following: (a) the date of the receipt of goods (not applicable in case of services); (b) the date on which the payment is made (earliest of credit date in the books of accounts or debit date in the bank account); or (c) the date immediately following 30 days in case of goods, and 60 days in case of services, from the date of issue of invoice by the supplier. If it is not possible to determine the time of supply as above, then the time of supply shall be the date of entry in the books of account of the recipient of supply.

Value of supply (Section 15 of GST Act) Value of supply is, generally, the transaction value, i.e., the price actually paid or payable for the said supply of goods and/or services, where − supplier and recipient are not related, and − the price is the sole consideration for the supply. (ii) Value of supply includes the amount which has been incurred by the receiver, reimbursements, free of charge supplies, royalties/license fees as condition of sale, incidental expenses, subsidies linked to price (other than by the central/state government) late fee, interest, penalty for late payment, post supply discount subject to conditions and all taxes other than GST levies. (iii) Discount given after supply is permitted to be excluded if it is linked to the invoice, known at the time of supply and also, ITC credit for the same has been reversed by the recipient. (iv) The value of the supply of goods or services or both between distinct persons (branch with same PAN) or related persons, other than where the supply is made through an agent, shall,(a) be the open market value of such supply;

GST in India – At a glance

(b) if open market value is not available, it shall be the value of supply of goods or services of like kind and quality; (c)

if value is not determinable under clause (a) or (b), it shall be the value as determined by application of rule 4 or rule 5, in that order.

However, where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods or services. In other words, in such cases, invoice value shall be accepted.

7 7.1

Threshold Limit (Basic Exemption)

Exemption limit (Section 22 of GST Act)

S. No.

States

Amount of Aggregate Turnover in a Financial Year

(a)

States/UTs barring specified in Sl. No. (b) below

INR 20 lakhs

(b)

Special category states – comprising of 11 states viz. Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

INR 10 lakhs

“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, non-taxable supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis; but excludes CGST, SGST, IGST, UTGST and Cess. [Sec 2(6)] Moreover, exempt supplies include non-taxable supplies, i.e. alcoholic liquor for human consumption, petroleum products, etc. Further, for the purpose of sec 22, turnover made on behalf of principals would be included in the turnover of agents. Furthermore, the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in sec 143, and the value of such goods shall not be included in the aggregate turnover of the registered job-worker.

GST Laws Manual: Acts, Rules and Forms

7.2

When threshold limit is not applicable (Section 24 of GST Act) The threshold limit is not applicable in the following cases: (i) Persons making any inter-state taxable supply; (ii) Casual taxable persons making taxable supply; (iii) Persons who are required to pay tax under reverse charge; (iv) Persons required to pay tax under sec 9(5) [where tax shall be paid by the e-commerce operator]; (v) Non-resident taxable persons making taxable supply; (vi) Persons who are required to deduct TDS under sec 51, whether or not separately registered under this Act; (vii) Persons who supply goods and/or services on behalf of other taxable persons whether as an agent or otherwise; (viii) Input service distributor, whether or not separately registered under the Act; (ix) Persons who supply goods and/or services, other than supplies made under sec 9(5), through electronic commerce operator, who is required to collect tax at source (TCS) under sec 52; (x) Every e-commerce operator; (xi) Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and (xiii) Such other person or class of persons as may be notified by the government on the recommendations of the Council.

8 8.1

Taxable person [Section 2(107) of GST Act] “Taxable person” means a person who is − registered under the GST Act, or −

8.2

Taxable Persons & Registration

liable to be registered under sec 22 or sec 24 of the CGST Act.

Who is liable for registration mandatorily under GST [Section 22(1) of GST Act]  Every supplier shall be liable to be registered in the state or union territory, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds INR 20 lakhs [INR10 lakhs in the Special Category States]  Other persons to whom threshold limit does not apply [discussed in earlier paras in this chapter]

GST in India – At a glance

8.3

Who is not liable to take registration? (Section 23 of GST Act) The person is not liable for registration if he is: (a) engaged exclusively in the business of supplying goods and/or services that are either not liable to tax (such as, specified petroleum products, alcoholic liquor for human consumption, etc.) (Or) are wholly exempt from tax under GST Act or under IGST Act; or (b) an agriculturist to the extent of supply of produce out of cultivation of land; or (c) category of persons as notified by the government, on the recommendations of the Council.

8.4

Agriculturist [Section 2(7) of GST Act] “Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land – (a) by own labour, or (b) by the labour of family, or (c)

by servants on wages payable in cash or kind or by hired labour under personal supervision or personal supervision of any member of family.

8.5

Time limit for taking registration [Section 25(1)] Within 30 days from the date on which the person becomes liable. However, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

8.6

Voluntary Registration under GST [Section 25(3)] The person, who is not liable to obtain registration mandatorily, may register voluntarily. All provisions of GST shall be applicable after registration.

9 1. 2.

Composition Scheme [Section 10]

Small taxpayers with an aggregate turnover in a financial year up to the specified limit of INR 50 Lakhs (may be extended to INR 100 Lakhs), shall be eligible for composition levy. Composition scheme is not available to the person if: (a) he is engaged in the supply of services other than supplies referred to in clause 6(b) of Schedule II (i.e. restaurant services serving food and non-alcoholic drinks);

GST Laws Manual: Acts, Rules and Forms

(b) he is engaged in making any supply of goods which are not leviable to tax under this Act [the definition matches with the definition of non-taxable supply under sec 2(78)]. Non-taxable supplies are specified petroleum products and alcoholic liquor for human consumption, etc.; (c) he is engaged in making any inter-State outward supplies of goods; (d) he is engaged in making any supply of goods through an e-com operator required to collect TCS under sec 52; and (e) he is a manufacturer of notified goods. Rate of composition levy S.No.

Nature of Supplier

Rate (% of Turnover) (CGST+SGST)

(i)

Manufacturer

2% (1%+1%)

(ii)

Persons engaged in making supplies in respect of food with service (e.g. caterers, restaurants, dhabas)

5% (2.5%+2.5%)

(iii)

Other suppliers

1% (0.5%+0.5%)

Output Tax

10.1 Meaning of output tax CGST/SGST

Sec 2(81)

IGST

Sec 2(18)

“Output tax” in relation to a taxable person, means the GST chargeable under the respective GST Act on taxable supply of goods or services or both, made by the supplier or by his agent, and excludes tax payable by him on reverse charge basis.

10.2 Steps for computation of output tax (1) First determine the rate of tax applicable to the goods and/or services supplied vis-à-vis their HSN (in respect of goods) and Service Accounting Codes (in respect of services); (2) Then determine the aggregate turnover under each of the following statutes for every state where having GSTIN(a) IGST (b) CGST (c) SGST

GST in India – At a glance

(3) Then determine the aggregate turnover of taxable supplies under each statute in the following categories(a) Goods wise – Rate of tax-wise (b) Service wise – Rate of tax-wise (4) Multiply the respective turnover with the applicable rate of tax.

Input Tax

11.1 Input tax credit in the GST 1. Input tax credit has been defined under sec 2(62) read with sec 2(63) of the GST Act. As per the combined reading of these provisions, ITC in relation to a registered person means and includes -

2. • • • • • • • 3.

ITC means and includes

ITC excludes

(i) (ii) (iii)

Tax paid under composition levy under sec 10

CGST, SGST, IGST and UTGST; IGST charged on import of goods; Reverse charges under the CGST/SGST/ IGST/ UTGST Acts

Input tax credit – Sec 16(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, and in the manner specified in sec 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. So far as eligibility of ITC, the government has not made any distinction amongst inputs, capital goods and input services. Further, claim of input tax credit on all goods, services and capital goods is available in one go.

GST Laws Manual: Acts, Rules and Forms

Summary of input tax credit in GST:

11.2 Restrictions in claiming ITC [Section 16 of GST Act]

GST in India – At a glance

•

In GST, taxability of sale/service will also determine the eligibility of input tax credit, which may be as under: S. No.

Nature of Supply

Availability of Input Tax

Taxable supply

Yes

Exempt supply

Non-taxable supply

Zero rated supply

Yes

11.3 Non creditable goods/services/supplies [Section 17(5)] Sl. No. Goods/Services/Supplies 1 All motor vehicle and conveyance

Exceptions other (i) When they are used for making the following taxable supplies • Further supply of such vehicles or conveyance • Transportation of passengers • Imparting training on driving, flying, navigating such vehicles/conveyance (ii) When they are used for Transportation of goods

• • • • •

Food and beverages Outdoor catering Beauty treatment Health services Cosmetic and plastic surgery

Membership of a club, health and fitness centre

• Rent-a-cab • Life insurance • Health insurance

Where such inward supply of goods/services of a particular category is used by a registered person: for making an outward taxable supply of the same category of goods or services or both, or as an element of a taxable composite or mixed supply A) Where the government notifies services which are obligatory for an employer to provide to its employees under any law for the time being in force. B) Same as stated at Sl No. 2 in this table 17

GST Laws Manual: Acts, Rules and Forms

Sl. No. Goods/Services/Supplies Exceptions 5 Travel benefits extended to employees on vacation such as leave or home travel concession

Works contract services when supplied Where it is an input service for for construction of immovable further supply of works contract property, other than plant and service machinery. [also see notes below this table]

Goods or services or both received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business. [also see notes below this table]

Goods/services on which tax has been paid under sec 10 as composition levy

Goods/services received by a non- Goods imported by him resident taxable person

Goods/services consumption

personal

• Goods lost, stolen, destroyed, written off, or • Goods disposed of by way of gift or free samples.

Any tax paid in terms of sec 74, 129 or 130. • Sec 74 deals with determination of tax not paid or short paid or erroneously refunded ITC wrongly availed or utilized by reason of fraud, etc. • Sec 129 deals with payment of tax at the time of detention, seizure and release of goods and conveyances in transit. • Sec 130 deals Confiscation of goods and/or conveyances and levy of penalty.

used

for

GST in India – At a glance

Sl. No. Goods/Services/Supplies Exceptions Notes: The word “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property. ‘Plant and Machinery’ means apparatus, equipment, machinery fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises.

11.4 Utilization of credit [Section 49(5)] IGST Credit

CGST Credit

SGST Credit

YES: YES: YES: To the followings, in the To the followings, in the To the followings, in the stated order: stated order: stated order: - Payment of IGST, - Payment of CGST, - Payment of SGST, - Payment of CGST, - Payment of IGST. - Payment of IGST. - Payment of SGST, NO: NO: - Payment of UTGST. - Payment of SGST - Payment of CGST - Payment of UTGST - Payment of UTGST

12 1. 2.

Job Work [Section 19, 143 of GST Act]

As per sec 143(1), “principal” means a registered person sending taxable goods for job work. Thus, sec143 is NOT applicable to “unregistered taxable person” Facilities to the principal • To send any inputs/capital goods to a job worker for job work without payment of tax • To send inputs/capital goods subsequently from one job worker to another job worker without payment of tax • To claim ITC on goods transferred to job worker. Sec 143 is optional. Principal may supply goods to job worker after charging of GST

GST Laws Manual: Acts, Rules and Forms

5. 6.

Sec 143 enables the principal to send taxable goods to a job worker (and also to another job-worker therefrom) without payment of tax, subject to• Intimation, and • certain conditions, as may be prescribed. If the benefit under sec 143 is availed, the principal shall be responsible and accountable for all the transactions between him and the job worker If inputs are not received within 1 year (capital goods in 3 years), it shall be deemed as supply in the hands of the principal on the day when goods were originally sent.

Tax Invoice, Bill of Supply, Debit/Credit Notes

13.1 Who is required to issue tax invoice/bill of supply and under what circumstances? (Section 31 of the GST Act) Tax invoice Bill of supply • Every registered taxable person shall • Instead of a tax invoice, a bill of issue a tax invoice for supply of – supply shall be issued in the following cases: o taxable goods, or o A registered taxable person o taxable services. supplying non-taxable goods • The expression “tax invoice” shall be and/or services, or deemed to include o A registered taxable paying o Any revised invoice issued by the tax under composition levy supplier in respect of a supply u/s 10. made earlier. • Separate invoice is not required to be • Bill of supply is not required to be issued if the value of the goods or issued if the value of the goods and / services supplied is less than INR or services supplied is less than INR 200 except when requested by the 200 when the recipient is unregistered recipient. & does not require the same. • Central/State Government may specify the categories of services in respect of which any other document issued in relation to the supply shall be deemed to be a tax invoice, subject to prescribed conditions.

13.2 Contents of tax invoice (Rule 1 of the Invoice Rules) Tax invoice shall be issued by the supplier containing the following details:(a) Name, address and GSTIN of the supplier; (b) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash 20

GST in India – At a glance

symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year; Date of its issue; Name, address and GSTIN/Unique ID Number, if registered, of the recipient; Name and address of the recipient and address of delivery, along with the name of State and its code, if such recipient is unregistered and where the taxable value of supply is INR 50,000/- or more; HSN code of goods, or accounting code of services; Description of goods or services; Quantity in case of goods and unit or Unique Quantity Code thereof; Total value of goods or services; Taxable value of goods or services taking into account discount or abatement, if any; Rate of tax (CGST, SGST or IGST); Amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST); Place of supply along with the name of State, in case of a supply in the course of inter-state trade or commerce; Place of delivery where the same is different from the place of supply; Whether the tax is payable on reverse charge; The word “Revised Invoice”, as the case may be, indicated prominently, where applicable along with the date and invoice number of the original invoice; and Signature or digital signature of the supplier or his authorized representative.

13.3 Circumstances when a debit note or credit note is issued (Section 34 of the GST Act) • Where a tax invoice has been issued, and o the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply; or o where the goods supplied are returned by the recipient; or o where goods or services or both supplied are found to be deficient, then the taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note. • Where a tax invoice has been issued and the taxable value and/or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable in respect of such supply, then the taxable person, who has 21

GST Laws Manual: Acts, Rules and Forms

• • •

supplied such goods and/or services, may issue to the recipient a debit note. Credit notes & debit notes shall contain the prescribed particulars. Otherwise, these notes may not be considered for adjustment of tax liability. No credit note shall be issued if incidence of tax/interest on such supply has been passed on to any other person. Debit note includes supplementary invoice.

Accounts and Records

14.1 Maintenance of Accounts and Records (Section 35 of the GST Act) 1. Every registered person shall keep and maintain, at his principal place of business, a true and correct account of the following: o Production or manufacture of goods; o Inward supply of goods and/or services; o Outward supply of goods and/or services o Stock of goods; o Input tax credit availed; o Output tax payable and paid; and o Such other particulars as may be prescribed in this behalf. • The term “principal place of business” means the place of business specified as the principal place of business in the certificate of registration [Section 2(89)]. • As per sec 2(85), the term “Place of Business” includes (a) Place from where the business is ordinarily carried on, and includes a warehouse, a godown or place where a taxable person stores goods, and provides/receives goods/services; (b) Place where a taxable person maintains his books of account; (c) A place where a taxable person is engaged in business through an agent, by whatever name called. • Registered assesses may keep and maintain such accounts and other particulars in the electronic form in the manner as may be prescribed. 2. Multiple places of business: o In case of multiple places of business, accounts relating to each place of business shall be kept at the respective places of business concerned. 22

GST in India – At a glance

For example, ABC has two offices in U.P.: one at NOIDA and other at Lucknow. He shall keep the accounts relating to both these places at the respective place, i.e., NOIDA and Lucknow.

Every owner or operator of warehouse or godown or any other place used for storage of goods, irrespective of whether he is a registered taxable person or not, shall maintain records of consigner, consignee and other relevant details of the goods as may be prescribed

The Commissioner has been empowered to notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified.

Relaxation by the Commissioner: If any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, the commissioner may permit such class of taxable persons to maintain the accounts in such manner as may be prescribed.

Except when goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples, if the registered taxable person fails to account for the goods and/or services in his books of account, the proper officer shall determine the amount of tax payable on the goods and/or services that are not accounted for, as if such goods and/or services had been supplied by such person and in this regard, the provisions of sec 73 or 74, as the case may be, shall apply, mutatis mutandis, for determination of such tax.

14.2 Retention of Accounts and Records (Section 36 of the GST Act) • Every assessee shall retain the prescribed books of accounts and other records until the expiry of 72 months (6 years) from the due date of filing of Annual Return for the year pertaining to such accounts and records. • In case an appeal or revision or any other proceeding is pending before any Appellate Authority or Revisional Authority or Tribunal or Court or is under investigation for an offence under Chapter XIX, then the assessee shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding or investigation for a period of one year after final disposal of such appeal or revision or proceeding or investigation, or for the period specified records under sec 36(1), whichever is later.

GST Laws Manual: Acts, Rules and Forms

Returns under the GST (Chapter IX of the GST Act)

15.1 Types of returns or reports and periodicity S. No.

Return/ ledger

Nature of return

GSTR-1

Details of outward supplies of taxable 10th of the next goods and/or services effected (other than month compounding taxpayer, non-resident tax payer, person deducting TDS and collecting TCS and ISD)

GSTR- 1A Details of outward supplies as added, Auto generated at corrected or deleted by the recipient common portal to be corrected before 17th of the next month. GSTR-2

Details of inward supplies of taxable 15th of the next goods and/or services claiming input tax month credit (other than compounding taxpayer, non-resident tax payer, person deducting TDS and collecting TCS and ISD)

GSTR-2A Details of inward supplies made available Auto generated at to the recipient on the basis of Form common portal. GSTR-1 furnished by the supplier

GSTR-3

Monthly return on the basis of finalization 20th of the next of details of outward supplies and inward month supplies along with the payment of amount of tax (other than compounding taxpayer, non-resident tax payer, person deducting TDS and collecting TCS and ISD)

GSTR-4

Quarterly return for taxpayer under sec 10

Due date

compounding 18th of the month next to quarter

GSTR-4A Details of inward supplies made available Auto generated at to the recipient registered under common portal. composition scheme on the basis of Form GSTR-1 furnished by supplier GSTR-5

Periodic return by non-resident foreign Refer Note 1 taxpayer

GST in India â&#x20AC;&#x201C; At a glance

S. No.

Return/ ledger

Nature of return

Due date

GSTR-6

Return for Input Service Distributor (ISD)

13th of next month

11 12

GSTR-6A Details of inward supplies made available Auto generated at to the ISD recipient on the basis of common portal. FORM GSTR-1 furnished by the supplier GSTR-7

Return for person deducting tax at source 10th of the next month

GSTR-7A TDS Certificate

5 days of depositing TDS

GSTR ITC-1

Communication of acceptance, Not specified in the discrepancy or duplication of input tax Rules. credit claim

GSTR-8

Details of supplies effected through e- 10th of the next commerce operator and the amount of tax month collected under sec 52(4)

GSTR-9

Annual Return

GSTR-9A Simplified Annual return by Compounding 31st December of taxable persons registered under sec 10 next FY

GSTR-9B Reconciliation Statement

GSTR-10 Final Return

GSTR-11 Details of inward supplies to be furnished 28th of next month by a person having UIN (as specified in format)

Refer Note 2

ITC ledger of tax payer

Continuous

Cash ledger of tax payer

Continuous

Tax ledger of tax payer

Continuous

New Registration: GSTR â&#x20AC;&#x201C; 1 / 2 in the first return is furnished after grant of registration. (Sec 40) Note 1: Within 20 days after the end of a tax period or within 7 days after the last day of the validity period of registration, whichever is earlier. Note 2: Within 3 months of the date of cancellation or date of cancellation order, whichever is later.

GST Laws Manual: Acts, Rules and Forms

15.2 Person-wise returns and periodicity S.N. Person 1

Normal/regular taxpayers – single • registration •

GSTR-1, GSTR-2 and GSTR-3; Annual return (GSTR-9, GSTR-9B)

Normal/regular taxpayers – • Multiple registration (for business verticals) within a state •

GSTR-1, GSTR-2 and GSTR-3 for each of the registrations separately; Annual return (GSTR-9, GSTR-9B)

Compounding/composition taxpayers

• •

GSTR-4; Annual return (GSTR-9A)

Casual taxpayers

GSTR-1, GSTR-2 and GSTR-3 returns for the period for which they have obtained registration

Non-resident taxpayers (Foreigners)

GSTR-5

Input Service Distributor (ISD)

GSTR-6

Authorities deducting TDS

GSTR-7

E-commerce operator

GSTR-8

15.3 • • •

•

Returns

Other features of the Returns Return shall be filed for each GSTIN; If a person has more than one TIN in one state, he shall file multiple returns; Filing of return o The filing of return shall be only through online mode; o Facility of offline generation and preparation of returns shall be available but offline returns shall have to be uploaded before the due date. Return without payment of self-assessed tax o The return may be filed; however, such return shall be treated as an invalid return; o Not to be taken into consideration for matching of invoices and for intergovernmental fund settlement among states and the centre.

GST in India – At a glance

15.4 Returns process flow GSTR-1 Returns of Outward Supplies Captures the transaction level details of the outward supplies of a tax payer

GSTR-2

Forms the basis for the statement of details of the inward supplies of all suppliers

Returns of Inward Supplies

Freezing of outward and inward supplies of every tax payer  Calculation of tax liability  Payment in the Monthly Return i.e. GSTR-3 GSTR-3 Monthly Return

Time Flow (GSTR-1/2) SUPPLIER

GSTR-1 Returns of Outward Supplies

Accept or reject modifications GSTR-1 Amended after accepted changes

RECIPIENT

Early uploading of invoices shall be allowed  Submission of return by 10th of next month

Able to see the invoices uploaded by their suppliers

GSTR-1A Inward supplies added/corrected/del eted by recipient made available to be filed on or before 17th of the next month

Final GSTR-2 Submission on or before 15th of the next month

Available for amendment after 10th of next month

Final GSTR-4 Submission on or before 18th of month next to quarter

Part A-GSTR-2A/GSTR-4A Inward Supplies made available on the basis of GSTR-1 after 10th of next month

Addition/correction/dele tion of invoices -From 11th to 15th of the next month -From 11th to 18th of month next to quarter (composition)

GST Laws Manual: Acts, Rules and Forms

15.5 Matching process • ITC claim matching ITC claim matching after submission of GSTR-3 GST-ITC-1A: Mismatches of current tax period

GST-ITC-1A: Mismatches of earlier tax period

GST-ITC-1A: Duplicate Claims of ITC

ITC claim in GSTR-2 > Output tax in GSTR-1

Invoices/Debit Notes accepted w/o amendment in GSTR2A/GSTR-2 by Recipient + Valid Return by Supplier

Rectification by Recipient/ Supplier

Addition to Current Month Output tax Liability of GSTR-3

No Yes

ITC Claim < = Output Tax paid

Yes

Addition to Next Month Output tax Liability of GSTR-3

ITC matching

Output Tax Liability Reduction Matching

•

Output Tax Liability Reduction matching after submission of GSTR-3 GST-ITC-1A: Mismatches of current tax period

GST-ITC-1A: Mismatches of earlier tax period

GST-ITC-1A: Duplicate Claims of Liability reduction

Liability Reduction claim> Admitted by Recipient

Credit Notes Accepted w/o amendment in GSTR-2A/GSTR-1 by Recipient + Valid Return by Recipient

Rectification by Recipient/ Supplier

Addition to Current Month Output tax Liability of GSTR-3

No Yes

Reduction claim < = ITC admitted on such Credit Note by Recipient + Valid Return by Recipient

Yes Matching

Addition to Next Month Output tax Liability of GSTR-3

GST in India – At a glance

Payment of Tax (Section 49 of the GST Act)

16.1 Broad features • Electronic online payment process – Paperless, and no use of manually prepared challan; • GSTN - Single point interface for challan generation; • Anytime, anywhere mode of payment of tax; • Faster remittance of tax revenue to the government account; • Speedy accounting and reporting; • Electronic reconciliation of all receipts; • Ease of payment - Four modes including Net Banking, Credit Card (CC)/Debit Card (DC), NEFT/RTGS and Over the Counter (OTC); • Common challan form with auto-population features; • Use of single challan and single payment instrument; • Common set of authorized banks; • Payment through any bank; • Common accounting codes. 16.2 • • • • • •

Payments to be made in the GST Central GST (CGST) State GST (SGST); Integrated GST (IGST); Tax deducted at source (TDS); Tax collected at source (TCS); Interest, penalty, fees and any other payment.

16.3 Persons are liable to pay GST • Supplier of goods and/or service including those paying tax under composition; • Imports and other specified/notified supplies  the liability may be casted on the recipient under the reverse charge mechanism unless assessed under Customs Law; • Third person (say, in the case of e-commerce operator responsible for TCS or government department responsible for TDS).

GST Laws Manual: Acts, Rules and Forms

16.4 Modes of payment of GST Modes of Payment

Mode I

Mode II Over the Counter (pay upto INR 10,000) per challan per tax period subject to exceptions in cash/cheque/DD

Internet Banking including Credit/Debit Card through Auth. Banks

Mode III RTGS/ NEFT

Payment Acceptance by Dept. officers in enforcement cases ONLY

Tax Deduction at Source (TDS) (Section 51)

17.1 Persons may be required to deduct TDS (a) A department or establishment of the Central or State Government, or (b) Local authority, or (c) Governmental agencies, or (d) Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council. 17.2 Rates of TDS S.N.

Act

(i) (ii) (iii)

CGST SGST IGST

Rate of TDS(on the payment made or credited to supplier) 1% 1% 2%

17.3 When to deduct TDS The deductor is required to deduct TDS if the total value of such supply under a contract exceeds INR 2.5 lakhs. “Value of supply” means amount indicated in the invoice excluding tax. TDS is required to be deducted on ALL taxable goods and/or services. 17.4 Obligations of deductor of TDS (a) Every deductor is liable for registration under the GST Act. Further, threshold limit shall not apply to the deductor of TDS.

GST in India – At a glance

(b)

(c)

(d)

(e) (f)

He shall pay the TDS deducted to the Government by the 10th day of the month succeeding the month in which TDS was deducted by debiting the electronic cash ledger maintained; and the electronic tax liability register shall be credited accordingly. He shall issue TDS certificate in Form GSTR-7A, to the deductee within 5 days of crediting the amount so deducted to the Government, mentioning therein – • the contract value, • rate of deduction, • amount deducted, • amount paid to the appropriate government, and • such particulars as may be prescribed in this behalf. He shall submit monthly return of TDS in Form GSTR 7 return by the 10th day of the month succeeding the month in which TDS was deducted, electronically on the Common Portal either directly or through Facilitation Centre. Details of tax deducted at source by the deductor shall be made available to the deductee in Part C of Form GSTR-2A electronically and the said deductee may include the same in Form GSTR-2. Deductor is not required to submit Annual Return in Form GSTR 8.

18 18.1 •

•

Tax Collection at Source (TCS)(Section 52)

Time of collection of TCS and its value Every electronic commerce operator (ECO), not being an agent, shall collect an amount calculated at the specified percentage of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator. “Net value of taxable supplies” shall mean Aggregate value of taxable supplies of goods or services made during any month, other than services notified under sec 9(5), by all registered taxable persons through the ECO (−) Aggregate value of taxable supplies returned to the suppliers during the said month. TCS would not be collected where notification is issued under sec 9(5). For example, suppose aggregator is notified under sec 9(5), then it would not collect TCS. TCS shall not be applicable where goods are supplied by the ECO on its own account.

GST Laws Manual: Acts, Rules and Forms

18.2 Rates of TCS S.N.

Act

(i) (ii) (iii)

CGST CGST IGST

Rate of TDS (of the net value of taxable supplies) 1% 1% 2%

18.3 Obligations of collector of TCS (a) TCS shall be paid within 10 days from the end of the month in which the collection is made; (b) ECO shall furnish a statement of outward supplies of goods/services (including returns thereof), electronically, giving the details of the amounts collected during the calendar month within 10 days from the end of the month in which the collection was made; (c) The statement shall contain details of amounts collected, supplier-wise in respect of all supplies effected through the website/url of the ECO during the calendar month. (d) Form and manner of said statement shall be prescribed in the GST Rules. (e) ECO shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both effected through it. 18.4 Matching of TCS with supplies by the supplier (a) Amount so remitted by the ECO shall be treated as if it is amount of tax paid by the concerned supplier and shall reflect in the supplier’s electronic cash ledger. The expression ‘concerned supplier’ means the supplier of goods/services making supplies through the ECO. (b) Concerned supplier shall claim credit of the amount collected and reflected in the statement of the ECO furnished, in the manner prescribed. (c) Details of the supplies furnished by the e-commerce operator would be compared with the corresponding outward supplies reflected by the concerned supplier in his valid monthly return. If the details do not match, discrepancy shall be communicated to both, the e-commerce operator and the concerned supplier. (d) After communication, if discrepancy is not rectified by the supplier in his valid return or the ECO in his statement for the month in which discrepancy is communicated, the same shall be added to the output tax liability of concerned supplier where the value of outward supplies furnished by the ECO is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which 32

GST in India – At a glance

the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically.

19 Supplier of online information and database access or retrieval services located outside India to specified person in the taxable territory (Section 14 of IGST Act) 19.1 Applicability of the provisions Sec 14 of the IGST Act fasten the liability to pay tax upon the supplier of service located in a non-taxable territory supplying online information and database access or retrieval services to non-taxable online recipient. Thus, the provisions have three essentials: (i) Supplier of service is located in a non-taxable territory; (ii) Supplier is supplying online information and database access or retrieval services; and (iii) Service is received by the non-taxable online recipient. 19.2 Meaning of “online information and database access or retrieval services” It means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services, such as,(a) Advertising on the internet; (b) Providing cloud services; (c) Provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet; (d) Providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; (e) Online supplies of digital content (movies, television shows, music, etc.); (f) Digital data storage; and (g) Online gaming. 19.3 Role of intermediary who arranges the services • Where the supplier of service is located in a non-taxable territory, and • provision of such service is arranged or facilitated by an intermediary located in the non-taxable territory, then 33

GST Laws Manual: Acts, Rules and Forms

• •

such intermediary shall be deemed to be supplying such services to the nontaxable online recipient. However, if the intermediary satisfies all the following conditions, he shall not be deemed as supplier of service: (a) the invoice or customer’s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory; (b) the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-assessee online recipient and the supplier of such services; (c) the intermediary involved in the supply does not authorise delivery; (d) the general terms and conditions of the supply are set by the service provider; and not by the intermediary.

19.4 Registration and payment of tax • For the purpose of payment of IGST, the supplier of the said services shall take a single registration under a Simplified Registration Scheme, as may be prescribed by submitting an application for registration, duly signed, in Form GST REG-09A. • Any person located in taxable territory, representing such supplier for any purpose in the taxable territory, shall take a registration and pay IGST on behalf of the supplier. • Where the supplier does not have a physical presence in the taxable territory or does not have a representative in the said territory, such supplier may appoint a person in the taxable territory for the purpose of paying IGST; and such person shall be liable to pay tax.

Refund (Section 54 & 55 of the GST Act))

20.1 Circumstances • Under the GST, export and supply to SEZ developer/unit have been considered as zero-rated supplies. However, the inputs and input services shall be purchased only after payment of GST. Therefore, refund arises to the exporters/SEZ developers/units due to tax paid by them ono inputs and input services exported as such; or o inputs or input services used in the goods and/or services exported out of India. • Refund of balance in electronic cash ledger as defined under sec 49(6).

GST in India – At a glance

• • • • • • •

Refund of unutilized input tax credit, subject to restrictions provided under sec 54(3) of the GST Act. Where the taxpayer is a manufacturer and its inputs/input services are taxable at a higher rate of tax as compared to finished goods/services. Payment of pre-deposit amount as a condition for entertainment of appeal, which is ultimately allowed in the favour of the taxpayer: thus, resulting in refund of the pre-deposit amount. Refund of tax paid on inward supplies to embassies, diplomats, etc. notified under sec 55. Payment of tax wrongly as IGST in lieu of (CGST+SGST); or vice-a-versa subject to prescribed conditions. [Section 19 of the IGST Act and sec 77 of the GST Act]. Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued or where a refund voucher has been issued. The IGST paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in the prescribed manner.

20.2 Time limit • As per sec 54 of the GST Act, an application for refund of tax and/or interest shall be made to the proper officer of IGST/CGST/SGST within 2 years from the relevant date in a prescribed form. However, for the persons specified under sec 54(2), i.e. United Nation Organisations, embassies, etc., the period shall be 6 months from the last day of the quarter in which such supply was received. • Claim for refund of the balance in electronic cash ledger as defined under sec 49(6), can be made in the monthly GST returns in prescribed manner. • The relevant date is critical to determine time within which the refund claim has to be filed. If the refund claim is filed after the relevant date, the claim would be rejected at the threshold; and there is no provision in the Act to condone the delay in filing of refund claim. • Ιn case of export of goods, application for refund shall be filed only after the export manifest or an export report, as the case may be, in respect of such goods is delivered under sec 41 of the Customs Act 1962. • In respect of supplies to a SEZ unit / developer, the application for refund shall be filed by the supplier of goods after such goods have been admitted in full in the SEZ for authorized operations, as endorsed by the specified officer of the Zone; • In respect of supplies to a SEZ unit / developer, the application for refund shall be filed by the supplier of services along with such evidence regarding 35

GST Laws Manual: Acts, Rules and Forms

•

receipt of services for authorized operations as endorsed by the specified officer of the Zone. Ιn respect of supplies regarded as deemed exports, the application shall be filed by the recipient of deemed export supplies.

20.3 Procedure for claiming refund • Applicant shall file an application in Form GST RFD-1, electronically, through the Common Portal either directly or from a Facilitation Centre. • Refund application has to be supported by prescribed documents evidencing facts that the refund is due to the applicant. • Claim for refund relating to balance in the electronic cash ledger in terms of sec 49(6) may be made through the return for the relevant tax period in Form GSTR-3, Form GSTR-4 or Form GSTR-7.

Assessment and Audit

21.1 Meaning of assessment and scope As per sec 2(11) of the GST Act, the term “assessment” means determination of tax liability under this Act and includes self-assessment, reassessment, provisional assessment, summary assessment, and best judgment assessment. 21.1.1 Self-assessment (Section 59 of the GST Act) A registered taxable person shall undertake self-assessment of the taxes payable and furnish a return for each tax period as specified in sec 39, which deals with returns. Determination of tax liability is to be undertaken by the tax payer himself and stated in the return to be filed by him. 21.1.2 Re-assessment The term re-assessment has not been defined under the Act. In general, power to reopen the assessment should be exercised on the basis of materials in assessment record and not on the basis of mere change of opinion. Assessment cannot be reopened on the basis of materials already considered at the time of original assessment. Mere change of opinion is not a reasonable ground for reassessment. Change of opinion would arise only in a case where reassessment is made on the same set of facts and with the same materials on record. If fresh materials are brought on record or if there was something to show that the dealer had concealed some material from the assessing officer, then the application of mind to new facts or materials by the assessing officer cannot be said to be mere change of opinion. 36

GST in India – At a glance

21.1.3 Provisional assessment (Section 60 of the GST Act) Provisional assessment can be invoked by a taxable person by making a request/application to the proper officer; and such request maybe made only under the following two circumstances(i) He is unable to determine the value of goods and/or services, or (ii) He is uncertain about the rate of tax applicable. 21.1.4 Summary assessment (Section 64 of the GST Act) Summary assessment is generally used in a tax legislation to denote ‘fast track assessment’ based on return filed by the assessee. • The proper officer must have sufficient ground or reason to believe that any delay in assessment will adversely impact the interest of revenue. • The proper officer must have evidence in his possession that the person has incurred, or is likely to incur, a liability to pay tax under this Act. 21.1.5 Best judgment assessment • As per section 62, the proper officer may apply best of his judgment where a registered taxable person fails to file his return, which may pertain to any of the following category o Return for the tax period in case of a normal taxable person, o Return in case of a person opting for composition, o Final return at the time of cancellation of registration. • As per section 63, the proper officer may also apply best of his judgment for the relevant tax periods and issue an assessment order where o a taxable person fails to obtain registration even though liable to do so, or o whose registration has been cancelled under section 29 but who was liable to pay tax.

21.2 Audit (Section 65 of the GST Act) • As per sec 2(13) of the GST Act, the term “audit” means o examination of records, returns and other documents maintained or furnished by the registered person under this Act or rules made thereunder or under any other law for the time being in force, o to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and o to assess his compliance with the provisions of this Act or rules made thereunder. • The Commissioner of CGST/SGST or any officer authorized by him, by 37

GST Laws Manual: Acts, Rules and Forms

• • •

•

way of general or special order may undertake audit of the business transactions at o the place of business of the registered person, or o the Department’s office. Intimation of audit will be issued to the taxable person at least 15 days in advance. The audit shall be completed within a period of 3 months from the date of commencement of audit; or under certain conditions, the extended period, which may be a further period not exceeding 6 months. During the course of audit, the authorized officer may require the registered person, (i) to afford him the necessary facility to verify the books of account or other documents as he may require and which may be available at such place, and (ii) to furnish such information as he may require and render assistance for timely completion of the audit. The proper officer may initiate proceeding for determination of tax under sec 73 or 74, levy of interest and/or penalty if the audit conducted reveals any evidence of o tax not paid or short paid, or o input tax credit wrongly availed or utilised, or o amount erroneously refunded.

21.3 Specific provisions for determination of tax S.No.

Section 73

Section 74

(1)

(2)

(3)

(4)

Main Reason for service of show cause notice (SCN)

Tax default other than fraud or any willful-misstatement or suppression of facts to evade tax

Tax default due to fraud or any willful-misstatement or suppression of facts to evade tax

Circumstances Sec 73(1): / Defaults - Any tax has not been paid or short paid, or - any tax has been erroneously refunded, or - where input tax credit

Sec 74(1): - Any tax has not been paid or short paid, or - any tax has been erroneously refunded, or - where input tax credit

GST in India – At a glance

S.No. (1)

(2)

Section 73

Section 74

(3)

(4)

has been wrongly availed or utilized (hereinafter stated as “tax default”)

has been wrongly availed or utilized (hereinafter stated as “tax default”) Sec 74(2): At least 6 months prior to the time limit specified in sec 74(10) for issuance of order

Time Limit for issuance of SCN

Sec 73(2): At least 3 months prior to the time limit specified in sec 73 (10) for issuance of order

Service statement

Sec 73(3),(4) and Sec 74(3),(4): Where SCN has been issued for any period, the PO may serve statement of tax default for other periods provided grounds are same as stated in the SCN

Issuance of order after determination

Sec73(9): After considering the representation, PO shall determine the amount of tax, interest and penalty, which shall be equivalent to 10% of tax or INR 10,000/-, whichever is higher

Sec74(9): After considering the representation, PO shall determine the amount of tax, interest and penalty.

Time limit for issuance of order

Sec 73(10): 3 years from the due date for filing of annual return for the financial year to which the tax not/short paid or ITC wrongly availed or utilised relates to, or within 3 years from the date of erroneous refund.

Sec 74(10): 5 years from the due date for filing of annual return for the financial year to which the tax not/short paid or ITC wrongly availed or utilised relates to, or within 5 years from the date of erroneous refund.

21.4 Special Audit (Section 66 of the GST Act) • Special audit can be ordered in writing by any officer not below the rank of Assistant Commissioner, (with the prior approval of the Commissioner), if such officer is of the view that 39

GST Laws Manual: Acts, Rules and Forms

•

• •

•

o the value has not been correctly declared, or o the credit availed is not within normal limits. The officer not below the rank of Assistant Commissioner, who has an adverse opinion or suspicion on the above aspects, after commencement and before completion of any scrutiny, enquiry, investigation or any other proceedings under the Act (i.e., at any stage of proceedings), may direct a registered person to get his books of accounts audited. The provisions are applicable notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force. Direction for special audit shall be given after prior approval of the Commissioner. Audit shall be conducted by o the Chartered Accountant, or o the Cost Accountant. The Auditor shall submit his report within 90 days (extendable to further 90 days).

22 22.1 S. N.

E-way bill

Person responsible for furnishing of information and generation of e-way bill [Rule 1(1) of Draft e-way bill Rules]

Whether mandatory if value exceeds specified amount 1 Registered person (either as (i) In relation to a Mandatory supplier or recipient)* supply (ii) For reasons other 2 Unregistered person* than supply (i) Recipient (registered) is Mandatory (iii) Due to inward ascertained at the time of supply from an commencement of movement unregistered of goods person (ii) Other cases Optional* * Where goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods. Thus, where recipient, who is registered, is known, it is mandatory to generate e-way bill either by the registered recipient or the unregistered person. 40

Nature of person who causes movement of goods

Purpose of movement

GST in India – At a glance

S. N.

Whether mandatory if value exceeds specified amount • If e-way bill is not generated and goods are handed over to the transporter; information shall be furnished by the person causing movement of goods, and e-way bill shall be generated by the transporter.

22.2 • •

Nature of person who causes movement of goods

Purpose of movement

Value of consignment for mandatory generation of e-way bill Provisions in respect of e-way bills are applicable where value of consignment exceeds INR 50,000/-. [Rule 1 of Draft e-way bill Rules] Further, the law has not made any distinction between taxable and exempted goods.

22.3 • • •

Mode of conveyance Own conveyance of the person causing movement of goods, or A hired conveyance, or Transporter. Whereas, as per sec 2(34) of the GST Act, the term “conveyance” includes a vessel, an aircraft and a vehicle.

22.4

How to furnish of information Information shall be furbished electronically, on the common portal.

22.5

Manner of generation of e-way bill [Rule 1]

Person When to causing furnish movement of information goods

Generation of eway bill by the person causing movement

Furnishing of information by the person and generation of e-way bill by the transporter

Person as Before stated in Para commence22.1 above ment of movement

Furnish information in Part A and Part B of Form GST INS-01, electronically, on common portal; & Generate waybill in Form GST INS-01

Furnishing of information by registered person in Part A of GST INS-01 and information relating to the transporter in Part B of said Form; and Transporter to generate way bill in Form GST INS-01. It is mandatory for the transporter to carry e-way bill with the conveyance.

GST Laws Manual: Acts, Rules and Forms

22.6

Generation and acceptance of details in e-way bill Step 1 Rule 1(1): Furnish information in Part A and B of Form GST INS-01 and generate e-way in Form GST INS-01.

Step 2 Rule 1(2): Upon generation of the e-way bill on the common portal, a unique eway bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal. Step 3 Rule 1(8): Details of e-way bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill. Rule 1(9): Where the recipient does not communicate his acceptance or rejection within 72 hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

23 1. 2.

Advance ruling (Section 95 of the GST Act)

As per sec 95 of the GST Act, â&#x20AC;&#x2DC;advance rulingâ&#x20AC;&#x2122; means a written decision provided by the authority to an applicant on matters or on questions as enumerated in sec 97(2) or sec 100(1) of the Law. The question on which the advance ruling is sought shall be in respect of (a) Classification of any goods and/or services; (b) Applicability of a notification issued under provisions of the Act having a bearing on the rate of tax; (c) Principles to be adopted for the purposes of determination of value of the goods and/or services; (d) Admissibility of input tax credit of tax paid or deemed to have been paid; (e) Determination of the liability to pay tax on any goods and/or services under the Act; (f) Whether applicant is required to be registered under the Act; (g) Whether any particular thing done by the applicant with respect to any goods and/or services amounts to or results in a supply of goods and/or services, within the meaning of that term.

GST in India â&#x20AC;&#x201C; At a glance

3. 4. 5.

6. 7. 8.

The application in Form GST ARA-1 shall be accompanied by a fee of INR 5000/-. Advance Ruling Authority will be located in every state. Authority for advance ruling shall comprise of one member CGST and one member SGST. They shall be appointed by the central and state government respectively. Their qualification and eligibility condition for appointment shall be prescribed in the GST Rules. Appeal in Form GST ARA-2 may be filed against the order by the applicant or CGST/SGST officer; filing fee is INR 10,000/-. Advance ruling shall be binding only on the applicant and on the jurisdictional tax authority of the applicant. Therefore, it is limited to the person who has applied for an advance ruling. Advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have changed.

24 1.

Any person aggrieved by any order or decision passed against him has the right to appeal. However, as per sec 120 of the GST Act, some decisions/ orders are not appealable. Appellate levels in the GST Act Appropriate appellate authority

Orders passed by

1st

First Appellate Authority

Adjudicating Authority

2nd

Appellate Tribunal

First Appellate Authority

3rd

High Court

Appellate Tribunal

4th

Supreme Court

High Court

Appeal level

Appeals (Chapter XVIII of the GST Act)

Time limit of filing and disposal of appeal

S. N. Nature of appeal

Time limit

Form

Appeal to the First Appellate Authority

(i)

Appeal by the person 3 months from the date of GSTAPL-01 aggrieved- Sec 107(1) communication of the decision or order (Condonation - 1 month) 43

GST Laws Manual: Acts, Rules and Forms

S. N. Nature of appeal (ii)

Acknowledgment filing of appeal

(iii)

Time limit -

GSTAPL-02

Appeal/Application by the GST officer as per direction of the Commissioner - Sec 107(2),(3)

6 months from the date of communication of the decision or order (Condonation - 1 month)

GSTAPL-03

(iv)

Order clearly indicating final amount of demand confirmed

GSTAPL-04

Appeal to the Appellate Tribunal

(i)

Appeal by the aggrieved person - Sec 112(1)

3 months from the date of communication of the decision or order

GSTAPL-05

(ii)

Acknowledgment of filing of appeal

Within 7 days of filing of appeal

GSTAPL-02

(iii)

Appeal / Application by the GST Officer as per direction of the Commissioner - Sec 112(3), (4)

6 months from the date of communication of the decision or order

GSTAPL-07

(iv)

Submission of a Within 45 days of the receipt of GSTAPL-06 memorandum of cross notice objection by other party Sec 112(5)

(v)

Disposal of appeal by the One year from the date of filing Appellate Tribunal - Sec of appeal, wherever possible 113(4)

(vi)

Issue of statement indicating final amount of demand confirmed by jurisdictional officer

Form

GSTAPL-04

GST in India – At a glance

S. N. Nature of appeal C

Time limit

Appeal to the High 180 days from the date of receipt of order Court - Sec 117(2)

Form GSTAPL-08

The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order, does not exceed INR 50,000/-.[Section 112(2)] Filing and restoration fee before the Appellate Tribunal: The fees for filing and restoration of appeal shall be INR 1000/- for every INR 1 Lakh of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in the order appealed against, subject to maximum of INR 25,000/-. [Rule 3(5) of the Draft GST Appeal and Revision Rules] Deposit of amount before filing of appeal (Stay Amount) As per Sec 107(6) of the GST Act, no appeal shall be filed, unless the appellant has paid– (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to 10% of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed.

Penalties

25.1 Penalties under the GST Act S.N. Default

Penalty

Section 10(5) – If a taxable person was not eligible to As per the pay tax under composition but opted the scheme under provisions of sec sec 10 73 or 74

Section 52(14) – e-commerce operator who fails to Upto furnish the information required by the notice served INR 25,000/under sec 52(12)

Section 73(9) – Determination of tax not paid or short INR 10,000 paid or erroneously refunded or input tax credit wrongly or availed or utilized for any reason other than fraud or any 10% of the tax, willful misstatement or suppression of facts. whichever is higher 45

GST Laws Manual: Acts, Rules and Forms

S.N. Default 4

Section 122(1) â&#x20AC;&#x201C; If a taxable person â&#x20AC;&#x201C; (i) supplies without issue of any invoice or issues an incorrect or false invoice; (ii) issues any invoice or bill without supply of goods/services in violation of the GST Act; (iii) collects any amount as tax but fails to pay the same to the credit of the appropriate Govt. beyond a period of 3 months from the due date; (iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the credit of the Govt. beyond a period of 3 months from the due date; (v) fails to deduct the TDS, or deducts short amount, or where he fails to pay to the amount deducted as tax; (vi) fails to collect TCS, or collects short amount, or where he fails to pay the amount collected as tax; (vii) takes and/or utilizes input tax credit without actual receipt of goods and/or services either fully or partially; (viii) fraudulently obtains refund of any CGST/SGST under this Act; (ix) Takes or distributes ITC in violation of GST Act; (x) falsifies or substitutes financial records or produces fake accounts/documents or furnishes any false information or return with an intention to evade payment of tax; (xi) fails to obtain registration; (xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently; (xiii) obstructs or prevents any officer in discharge of his duties under the Act; (xiv) transports any taxable goods without the cover of specified documents; (xv) suppresses his turnover leading to evasion of tax; (xvi) fails to keep, maintain or retain books of account and other documents in accordance with GST Act;

Penalty INR 10,000/or Amount equivalent to the tax default, whichever is higher

GST in India – At a glance

S.N. Default

Penalty

(xvii) fails to furnish information/documents called for by a CGST/SGST officer or furnishes false information/documents during any proceedings under this Act; (xviii) supplies, transports or stores goods which he has reason to believe are liable to confiscation under this Act; (xix) issues any invoice/document by using identification no. of another taxable person; (xx) tampers with, or destroys any material evidence; (xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act. 5

INR 10,000 Section 122(2)– Registered Taxable person who: or • supplies any goods or services on which any tax has 10% of the tax not been paid or short-paid or erroneously refunded; due, whichever is or higher • where the input tax credit has been wrongly availed or utilized • for any reason, other than the reason of fraud or any willful misstatement or suppression of facts to evade tax

Section 122(3) – Any person who – (i) aids or abets any of the offences by a taxable person which are set out in sec85(1); (ii) deals with goods which he knows or has reason to believe are liable to confiscation; (iii) deals with supply of services which he knows or has reason to believe are in contravention of GST Act; (iv) fails to appear pursuant to a summons; (v) fails to issue invoice as per the GST Act; or (vi) fails to account for an invoice in his books of account.

Up to INR 25,000/-

Section 125 – Any person who contravenes any provisions of the GST Act or the rules in respect of which no penalty is separately provided.

Up to INR 25,000/-

GST Laws Manual: Acts, Rules and Forms

S.N. Default 8

Penalty

Penalty as per the Section 127 Where the proper officer is of the view that a person is order issued by liable to a penalty and the same is not covered under any the proper officer proceeding under sections 62, 63, 64, 73, 74, 129 or 130, he may issue an order levying such penalty after giving a notice.

25.2 Offences under the GST Act (Section 132 of the GST Act) â&#x20AC;˘ Following offences are liable for prosecution under the GST Act:â&#x20AC;&#x201C; (i) Supplying goods and/or services without issue of invoice or grossly mis-declares the description of the supply on invoice to intentionally evade tax; (ii) Issuing invoice without supply of any goods/services leading to wrongful availment of credit or refund of duty; (iii) Obstructing or preventing any officer in discharge of his duty; (iv) Dealing with any goods, which one knows or has reason to believe are liable to confiscation; (v) Collection of any amount as tax but not crediting to the appropriate Government; (vi) Collection of any tax in contravention of the provisions of the GST law but not crediting to the appropriate Govt.; (vii) Taking or utilizing input tax credit without actual receipt of goods/services; (viii) Evades tax, fraudulently avails input tax credit or obtains refund by an offence not covered in above clauses; (ix) Falsification or substitution of financial records or producing fake accounts/documents or furnishing any false information with an intention to evade payment of tax; (x) Dealing with any supply of services which one knows or has a reason to believe are in contravention of provisions of the GST law; (xi) Tampers with or destroys any material evidence or documents; (xii) Failing to supply any information; (xiii) Attempting to commit or abetting the commission of any of the offences mentioned in this section.

GST in India â&#x20AC;&#x201C; At a glance

â&#x20AC;˘

Quantum of punishment for the above-stated offences

Amount involved in relation to the offence

Punishment

Where amount of tax evaded exceeds Imprisonment for a term which may INR 5 crores extend to 5 years and fine, cognizable and non-bailable Where amount of tax evaded exceeds Imprisonment for a term which may INR 2 crores but does not exceed INR 5 extend to 3 years and fine, noncognizable and bailable crores Where amount of tax evaded exceeds Imprisonment for a term which may INR 1 crore but does not exceed INR 2 extend to 1 years and fine crore Every subsequent conviction

Imprisonment for a term which may extend to 5 years and fine

Commits or abets in offences specified Imprisonment for a term which may in para (iii), (xi) & (xii) above extend to 6 months and fine

Information returns (Section 150 of the GST Act)

26.1 Who is required to file information return? Following persons may be required to furnish information return, within such time, in such form and manner, to such authority or agency as may be prescribed o Taxable person, o Local authority or other public body or association, o Department of VAT or central/state excise duty or customs duty, o Income tax authority, o Banking company, o State Electricity Board or electricity distribution Co., o Registrar or the sub-Registrar appointed under sec 6 of the Registration Act, 1908, o Registrar under the Companies Act, 2013, o Registering authority under the Motor Vehicles Act, 1988, o Collector of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, 49

GST Laws Manual: Acts, Rules and Forms

o o o o o o

Recognised stock exchange, A depository referred in the Depositories Act, 1996, An officer of the Reserve Bank of India, G.S.T. network, The person to whom UIN has been granted under sec 23(8), Any other person as may be specified.

26.2 What type of information may be asked in the return? Information may relate to o details of payment of tax, o details of transaction of goods or services, o transactions related to a bank account, o consumption of electricity, o transaction of purchase, sale or exchange of goods or property or right or interest in a property. 26.3 Penalty for non-furnishing of information return INR 100/- for each day of the period during which the failure to furnish such return continues maximum upto INR 5,000/-.

Part B GST Acts

GST Laws Manual: Acts, Rules and Forms

PART B: GST Acts ....................................................................................... 51-430 1.

Amended/Inserted Articles by the Constitution (101st Amendment) Act, 2016 ....................................................................................................... 53

The Central Goods and Services Tax Act, 2017 (CGST Act) ....................... 63

The Integrated Goods and Services Tax Act, 2017 (IGST Act) .................. 215

The Union Territory Goods and Services Tax Act, 2017 (UGST Act) ................................................................................................. 241

The Goods and Services Tax (Compensation to States) Act, 2017 ............. 263

The State Goods and Services Tax Act (Rajasthan SGST Act) .................. 277

Amended/Inserted Articlesâ&#x20AC;Ś (101st Amendment) Act, 2016

Amended/Inserted Articles by the Constitution (101st Amendment) Act, 2016 Amended/Inserted Articles of the Constitution of India

246A. 248. 249. 250. 268. 269. 269A. 270. 271. 279A. 286. 366. 368.

Special provision with respect to goods and services tax Residuary powers of legislation Power of Parliament to legislate with respect to a matter in the State List in the national interest Power of Parliament to legislate with respect to any matter in the State List if a Proclamation of Emergency is in operation Duties levied by the Union but collected and appropriated by the States Taxes levied and collected by the Union but assigned to the States Levy and collection of goods and services tax in course of inter-State trade or commerce Taxes levied and distributed between the Union and the States Surcharge on certain duties and taxes for purposes of the Union Goods and Services Tax Council Restrictions as to imposition of tax on the sale or purchase of goods Definitions Power of Parliament to amend the Constitution and procedure therefor

54 54 54 54 55 55 56 56 57 57 59 59 60

SIXTH SCHEDULE ................................................................................................ 61 SEVENTH SCHEDULE.......................................................................................... 61

GST Laws Manual: Acts, Rules and Forms

Amended/Inserted Articles of the Constitution of India 1

[246A. Special provision with respect to goods and services tax (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Explanation.—The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council.] 248. Residuary powers of legislation (1) 2[Subject to article 246A, Parliament] has exclusive power to make any law with respect to any matter not enumerated in the concurrent list or State List. 249.

Power of Parliament to legislate with respect to a matter in the State List in the national interest (1) Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than twothirds of the members present and voting that it is necessary or expedient in national interest that Parliament should make laws with respect to 3[goods and services tax provided under article 246A or] any matter enumerated in the State List specified in the resolution, it shall be lawful for Parliament to make laws for the whole or any part of the territory of India with respect to that matter while the resolution remains in force. 250.

Power of Parliament to legislate with respect to any matter in the State List if a Proclamation of Emergency is in operation (1) Notwithstanding anything in this Chapter, Parliament shall, while a Proclamation of Emergency is in operation, have power to make laws for the whole or any part of the territory of India with respect to 4[goods and services tax provided under article 246A or] any of the matters enumerated in the State List.

1 2 3 4

Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “Parliament”. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016.

Amended/Inserted Articles… (101st Amendment) Act, 2016

268.

Duties levied by the Union but collected and appropriated by the States (1) Such stamp duties 5[***] as are mentioned in the Union List shall be levied by the Government of India but shall be collected(a) in the case where such duties are leviable within any Union territory, by the Government of India, and (b) in other cases, by the States within which such duties are respectively leviable. 6

[268A. ***]

269. Taxes levied and collected by the Union but assigned to the States (1) Taxes on the sale or purchase of goods and taxes on the consignment of goods 7[except as provided in article 269A] shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation. – For the purposes of this clause,– (a) the expression “taxes on the sale or purchase of goods” shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression “taxes on the consignment of goods” shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.

5 6

Omitted the words “and such duties of excise on medicinal and toilet preparations” vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016., Earlier read as, “268A. Service tax levied by Union and collected and appropriated by the Union and the States.(1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2). (2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (1) shall be– (a) collected by the Government of India and the States; (b) appropriated by the Government of India and the States, in accordance with such principles of collection and appropriation as may be formulated by Parliament by law.” Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016.

GST Laws Manual: Acts, Rules and Forms 8

[269A. Levy and collection of goods and services tax in course of inter-State trade or commerce (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.

(2) (3) (4) (5)

Explanation. - For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India. Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under article 246A, such amount shall not form part of the Consolidated Fund of India. Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.]

270. (1)

Taxes levied and distributed between the Union and the States All taxes and duties referred to in the Union list, except the duties and taxes referred to in 9[articles 268, 269 and article 269A], respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). 10 [(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2). (1B) The tax levied and collected by the Union under clause (2) of article 246A and article 269A, which has been used for payment of the tax levied by Union under clause (1) of article 246A and the amount apportioned to the

8 9 10

Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, â&#x20AC;&#x153;articles 268, 268A and article 269â&#x20AC;?. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016.

Amended/Inserted Articles… (101st Amendment) Act, 2016

Union under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).] 271. Surcharge on certain duties and taxes for purposes of the Union Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles 11[except the goods and services tax under article 246A,] by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. 12

[279A. Goods and Services Tax Council (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:— (a) the Union Finance Minister..................... Chairperson; (b) the Union Minister of State in charge of Revenue or Finance................. Member; (c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government....................Members. (3) The Members of the Goods and Services Tax Council referred to in subclause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide. (4) The Goods and Services Tax Council shall make recommendations to the Union and the States on— (a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services 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 Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under article 269A 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; 11 12

Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 12.09.2016.

GST Laws Manual: Acts, Rules and Forms

(5) (6)

(7) (8) (9)

(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. The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a meeting, 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, namely:— (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. (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 shall establish a mechanism to adjudicate any dispute — (a) between the Government of India and one or more States; or (b) between the Government of India and any State or States on one side and one or more other States on the other side; or (c) between two or more States,

Amended/Inserted Articles… (101st Amendment) Act, 2016

arising out of the recommendations of the Council or implementation thereof.] 286. Restrictions as to imposition of tax on the sale or purchase of goods (1) No law of a State shall impose, or authorise the imposition of, a tax on 13[the supply of goods or of services or both, where such supply takes place] (a) outside the State; or (b) in the course of the import of the 14[goods or services or both] into, or export of the 15[goods or services or both] out of, the territory of India. (2) Parliament may by law formulate principles for determining when a 16[supply of goods or of services or both] in any of the ways mentioned in clause (1). 17 [(3) ***] 366.

Definitions

In this Constitution, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say18 [(12A) “goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption;] 19 [(26A) “Services” means anything other than goods; (26B) “State” with reference to articles 246A, 268, 269, 269A and article 279A includes a Union territory with Legislature;]

14 15 16 17

18 19

Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “the sale or purchase of goods where such sale or purchase takes place”. Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “goods”. Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “goods”. Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “sale or purchase of goods takes place”. Omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “(3) Any law of a State shall, insofar as it imposes, or authorises the imposition of,(a) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or (b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.” Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016.

GST Laws Manual: Acts, Rules and Forms

368.

Power of Parliament to amend the Constitution and procedure therefor (2) An amendment of this Constitution may be initiated only by the introduction of a Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by a majority of the total membership of that House and by a majority of not less than two thirds of the members of that House present and voting, it shall be presented to the President who shall give his assent to the Bill and thereupon the Constitution shall stand amended in accordance with the terms of the Bill : Provided that if such amendment seeks to make any change in(a) article 54, article 55, article 73, 20[article 162, article 241 or article 279A], or (b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part XI, or (c) any of the Lists in the Seventh Schedule, or (d) the representation of States in Parliament, or (e) the provisions of this article, the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the President for assent.

Substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, â&#x20AC;&#x153;article 162 or article 241â&#x20AC;?.

Amended/Inserted Articles… (101st Amendment) Act, 2016

SIXTH SCHEDULE [Articles 244(2) and 275(1)] Provisions as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram

8 Powers to assess and collect land revenue and to impose taxes (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say(a) taxes on professions, trades, callings and employments; (b) taxes on animals, vehicles and boats; (c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; 21[***] (d) taxes for the maintenance of schools, dispensaries or roads; 22[and] [(e) 23taxes on entertainment and amusement.] SEVENTH SCHEDULE (Article 246) List I- Union List [84. 24Duties 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.]

21 22 23 24

In paragraph 8, in subparagraph (3), omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “and” In paragraph 8, in subparagraph (3), inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Inserted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Entry 84 of the Union List, substituted vide the the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “84. Duties of excise on tobacco and other goods manufactured or produced in India except – (a) alcoholic liquors for human consumption. (b) pium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry.”.

GST Laws Manual: Acts, Rules and Forms 25

[92. [92C.

List II-State List

[52. [54.

[55. [62.

***] ***] ****] Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods.] ***] Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council.]

Entry 92 of the Union List, omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “92. Taxes on the sale or purchase of newspapers and on advertisements published therein.”. Entry 92C of the Union List, omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “92C. Taxes on services.”. Entry 52 of the State List; omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “52. Taxes on the entry of goods into a local area for consumption, use or sale therein.”. Entry 54 of the State List, substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as,

“54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 29

92A of List I.” Entry 55 of the State List, omitted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as,

“55. Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television.” Entry 62 of the State List, substituted vide the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16.09.2016. Earlier read as, “62. Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling.”

The Central Goods and Services Tax Act, 2017 CHAPTER I

PRELIMINARY

1. 2.

Short title, extent and commencement. Definitions.

70 70

CHAPTER II ADMINISTRATION 3. 4. 5. 6.

Officers under this Act. Appointment of officers. Powers of officers. Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances.

83 84 84 84

CHAPTER III LEVY AND COLLECTION OF TAX 7. 8. 9. 10. 11.

Scope of supply. Tax liability on composite and mixed supplies. Levy and collection. Composition levy. Power to grant exemption from tax.

85 85 86 87 88

CHAPTER IV TIME AND VALUE OF SUPPLY 12. 13. 14. 15.

Time of supply of goods. Time of supply of services. Change in rate of tax in respect of supply of goods or services. Value of taxable supply.

89 90 91 92

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CHAPTER V INPUT TAX CREDIT 16. 17. 18. 19. 20. 21.

Eligibility and conditions for taking input tax credit. Apportionment of credit and blocked credits. Availability of credit in special circumstances. Taking input tax credit in respect of inputs and capital goods sent for job work. Manner of distribution of credit by Input Service Distributor. Manner of recovery of credit distributed in excess.

94 95 97 99 100 101

CHAPTER VI REGISTRATION 22. 23. 24. 25. 26. 27. 28. 29. 30.

Persons liable for registration. Persons not liable for registration. Compulsory registration in certain cases. Procedure for registration. Deemed registration. Special provisions relating to casual taxable person and nonresident taxable person. Amendment of registration. Cancellation of registration. Revocation of cancellation of registration.

101 102 102 103 105 105 105 106 107

CHAPTER VII TAX INVOICE, CREDIT AND DEBIT NOTES 31. 32. 33. 34.

Tax invoice. Prohibition of unauthorised collection of tax. Amount of tax to be indicated in tax invoice and other documents. Credit and debit notes.

108 110 110 110

CHAPTER VIII ACCOUNTS AND RECORDS 35. 36.

Accounts and other records. Period of retention of accounts.

111 112

CHAPTER IX RETURNS 37. 38. 64

Furnishing details of outward supplies. Furnishing details of inward supplies.

112 113

The Central Goods and Services Tax Act, 2017

39. 40. 41. 42. 43. 44. 45. 46. 47. 48.

Furnishing of returns. First return. Claim of input tax credit and provisional acceptance thereof. Matching, reversal and reclaim of input tax credit. Matching, reversal and reclaim of reduction in output tax liability. Annual return. Final return. Notice to return defaulters. Levy of late fee. Goods and services tax practitioners.

114 116 116 116 117 119 119 119 119 120

CHAPTER X PAYMENT OF TAX 49. 50. 51. 52. 53.

Payment of tax, interest, penalty and other amounts. Interest on delayed payment of tax. Tax deduction at source. Collection of tax at source. Transfer of input tax credit.

120 122 122 123 125

CHAPTER XI REFUNDS 54. 55. 56. 57. 58.

Refund of tax. Refund in certain cases. Interest on delayed refunds. Consumer Welfare Fund. Utilisation of Fund.

126 130 130 131 131

CHAPTER XII ASSESSMENT 59. 60. 61. 62. 63. 64.

Self- assessment. Provisional assessment. Scrutiny of returns. Assessment of non-filers of returns. Assessment of unregistered persons. Summary assessment in certain special cases.

131 131 132 132 133 133

CHAPTER XIII AUDIT 65. 66.

Audit by tax authorities. Special audit.

133 134 65

GST Laws Manual: Acts, Rules and Forms

CHAPTER XIV INSPECTION, SEARCH, SEIZURE AND ARREST 67. 68. 69. 70. 71. 72.

Power of inspection, search and seizure. Inspection of goods in movement. Power to arrest. Power to summon persons to give evidence and produce documents. Access to business premises. Officers to assist proper officers.

135 137 138 138 138 139

CHAPTER XV DEMANDS AND RECOVERY 73.

74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84.

Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts. General provisions relating to determination of tax. Tax collected but not paid to Government. Tax wrongfully collected and paid to Central Government or State Government. Initiation of recovery proceedings. Recovery of tax. Payment of tax and other amount in instalments. Transfer of property to be void in certain cases. Tax to be first charge on property. Provisional attachment to protect revenue in certain cases. Continuation and validation of certain recovery proceedings.

139 141 142 144 145 145 145 148 148 148 149 149

CHAPTER XVI LIABILITY TO PAY IN CERTAIN CASES 85. 86. 87. 88. 89. 90.

Liability in case of transfer of business. Liability of agent and principal. Liability in case of amalgamation or merger of companies. Liability in case of company in liquidation. Liability of directors of private company. Liability of partners of firm to pay tax.

150 150 150 150 151 151

The Central Goods and Services Tax Act, 2017

91. 92. 93. 94.

Liability of guardians, trustees, etc. Liability of Court of Wards, etc. Special provisions regarding liability to pay tax, interest or penalty in certain cases. Liability in other cases.

152 152 152 153

CHAPTER XVII ADVANCE RULING 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106.

Definitions. Authority for advance ruling. Application for advance ruling. Procedure on receipt of application. Appellate Authority for Advance Ruling. Appeal to Appellate Authority. Orders of Appellate Authority. Rectification of advance ruling. Applicability of advance ruling. Advance ruling to be void in certain circumstances. Powers of Authority and Appellate Authority. Procedure of Authority and Appellate Authority.

154 155 155 155 156 156 157 157 157 158 158 158

CHAPTER XVIII APPEALS AND REVISION 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121.

Appeals to Appellate Authority. Powers of Revisional Authority. Constitution of Appellate Tribunal and Benches thereof. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc. Procedure before Appellate Tribunal. Appeals to Appellate Tribunal. Orders of Appellate Tribunal. Financial and administrative powers of President. Interest on refund of amount paid for admission of appeal. Appearance by authorised representative. Appeal to High Court. Appeal to Supreme Court. Sums due to be paid notwithstanding appeal, etc. Appeal not to be filed in certain cases. Non- appealable decisions and orders.

159 161 162 164 167 168 170 171 171 171 172 173 174 174 174 67

GST Laws Manual: Acts, Rules and Forms

CHAPTER XIX OFFENCES AND PENALTIES 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138.

Penalty for certain offences. Penalty for failure to furnish information return. Fine for failure to furnish statistics. General penalty. General disciplines related to penalty. Power to impose penalty in certain cases. Power to waive penalty or fee or both. Detention, seizure and release of goods and conveyances in transit. Confiscation of goods or conveyances and levy of penalty. Confiscation or penalty not to interfere with other punishments. Punishment for certain offences. Liability of officers and certain other persons. Cognizance of offences. Presumption of culpable mental state. Relevancy of statements under certain circumstances. Offences by companies. Compounding of offences.

175 177 177 178 178 178 179 179 180 181 181 183 184 184 184 184 185

CHAPTER XX TRANSITIONAL PROVISIONS 139. 140. 141. 142.

Migration of existing taxpayers. Transitional arrangements for input tax credit. Transitional provisions relating to job work. Miscellaneous transitional provisions.

186 187 191 192

CHAPTER XXI MISCELLANEOUS 143. 144. 145. 146. 147. 148. 149. 150. 68

Job work procedure. Presumption as to documents in certain cases. Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence. Common Portal. Deemed exports. Special procedure for certain processes. Goods and services tax compliance rating. Obligation to furnish information return.

196 198 198 199 199 199 199 200

The Central Goods and Services Tax Act, 2017

151. 152. 153. 154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167. 168. 169. 170. 171. 172. 173. 174.

Power to collect statistics. Bar on disclosure of information. Taking assistance from an expert. Power to take samples. Burden of proof. Persons deemed to be public servants. Protection of action taken under this Act. Disclosure of information by a public servant. Publication of information in respect of persons in certain cases. Assessment proceedings, etc., not to be invalid on certain grounds. Rectification of errors apparent on the face of record. Bar on jurisdiction of civil courts. Levy of fee. Power of Government to make rules. Power to make regulations. Laying of rules, regulations and notifications. Delegation of powers. Power to issue instructions or directions. Service of notice in certain circumstances. Rounding off of tax, etc. Anti-profiteering measure. Removal of difficulties. Amendment of Act 32 of 1994. Repeal and saving.

201 202 202 202 202 202 202 203 204 204 205 205 206 206 206 206 206 207 207 208 208 208 208 209

SCHEDULE I

210

SCHEDULE II

210

SCHEDULE III

213

GST Laws Manual: Acts, Rules and Forms

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 12th April, 2017/Chaitra 22, 1939 (Saka) The following Act of Parliament received the assent of the President on the 12th April, 2017, and is hereby published for general information:— THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 NO. 12 OF 2017 [12th April, 2017] An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY (1)

Short title, extent and commencement. This Act may be called the Central Goods and Services Tax Act, 2017.

(2)

It extends to the whole of India except the State of Jammu and Kashmir.

(3)

It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that 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 coming into force of that provision. Definitions. In this Act, unless the context otherwise requires,–– 2.

(1)

“actionable claim” shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882; (4 of 1882)

(2)

“address of delivery” means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both;

(3)

“address on record” means the address of the recipient as available in the records of the supplier;

The Central Goods and Services Tax Act, 2017

(4)

“adjudicating authority” means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;

(5)

“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;

(6)

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

(7)

“agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land— (a)

by own labour, or

(b)

by the labour of family, or

(c)

by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

(8)

“Appellate Authority” means an authority appointed or authorised to hear appeals as referred to in section 107;

(9)

“Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal constituted under section 109;

(10)

“appointed day” means the date on which the provisions of this Act shall come into force;

(11)

“assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment;

(12)

“associated enterprises” shall have the same meaning as assigned to it in section 92A of the Income-tax Act, 1961; (43 of 1961)

(13)

“audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder;