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GST COMES TRUE

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GST COMES TRUE
Mr. M. GOVINDARAJAN By: Mr. M. GOVINDARAJAN
July 3, 2017
All Articles by: Mr. M. GOVINDARAJAN       View Profile
  • Contents

Expected implementation of GST comes true when the Hon’ble President implemented by ringing a bell in the Central Hall of Parliament at 00.00 hrs on 01.07.2017. 

It comes true after a prolonged journey of 11 years when it was considered to be implemented in India.  GST as all aware consumes most of the indirect taxes levied by the Central Government and the State Governments.

The Constitutional amendment paved the way for enabling the Central Government and State Government to levy GST on the value of the supply of goods or services or both.

The GST Council formed by the Constitutional amendment led the way for the early implementation and smooth transition from the existing indirect tax regime to the new GST regime.

The GST Network established for the purpose of maintaining the system of the entire GST network from registration to every step involved in this aspect.  Every transaction will be paperless and online.  It is hoped that the GSTN will maintain and manage the entire network without any problems caused to the taxpayers and the administration.

The Central Government enacted four acts and got the nod of the President-

All the States passed the respective State Goods and Services Tax Act except Kerala and West Bengal which promulgated ordinances for this purposes.  All the provisions of the State Tax come into force with effect from 01.07.2017.

Nearly the provisions of 17 sections of CGST Act came into effect from 22.06.2017.  Except the following sections all other sections came into effect from 01.07.2017-

The Rules recommended and approved by the GST Council in respect of Central tax has been incorporated by the Central Government in the Central Goods and Services Tax Rules, 2017 which come into effect from 01.07.2017-

Chapter II

COMPOSITION RULES

Chapter III

REGISTRATION

Chapter IV

Determination of Value of Supply

Chapter V

Input Tax Credit

Chapter VI

TAX INVOICE, CREDIT AND DEBIT NOTES

Chapter VII

Accounts and Records

Chapter VIII

Returns

Chapter IX

Payment of Tax

Chapter X

Refund

Chapter XI

ASSESSMENT AND AUDIT

Chapter XII

Advance Ruling

Chapter XIII

Appeals and Revision

Chapter XIV

Transitional Provisions

Chapter XV

Anti - Profiteering

Chapter XVI

E-way Rules

The provisions of E-way Rules, even though, recommended and approved by GST Council, the Government has not formulated.  Rule 138 provides that till such time as an E-way bill system is developed and approved by the Council, the Government may, by notification, specify the documents that the person in charge of a conveyance carrying any consignment of goods shall carry while the goods are in movement or in transit storage.

Nearly 18 notifications were issued by the Government to carry out the provisions of sections and rules.  One circular was issued providing the list of ‘proper officer’ for dealing with the provisions of Composition Levy and Registration.

In respect of IGST Act, 2017 the provisions of six sections came into effect from 22.06.2017.  The remaining section, except section 15 which deals with refund of integrated tax paid on supply of goods to tourist leaving India, came into effect from 01.07.2017.

Vide Notification No. 4/2017-Integrated tax, dated 28.06.2017, the Central Government notified the ‘Integrated Goods and Services Tax Rules, 2017’ which came into effect from 22.06.2017.  Rule 2 provides that the CGST Rules, 2017 for carrying out the provisions of section 20 of IGST Act shall, so far as may be, apply in relation to integrated tax  as they apply in relation to central tax.

The Central Government also notifies the rate of interest payable by the taxable person for the delayed payment of tax and also the interest payable by the Department for the delayed refund both for Central tax and integrated tax.

In respect of UTGST Act, 2017, nearly 8 sections came into effect from 22.06.2017 and the remaining came into effect from 01.07.2017.  Section 21 of the Act provides that most of the provisions of central tax are applicable to Union territory tax.  Rule is yet to be made by the Government for Union territory tax.

Vide Notification No. 01/2017-Compensation cess, dated 28.06.2017 the Central Government notified all sections of the GST (Compensation to States) Act, 2016 shall come into force with effect from 01.07.2017.

In respect of rate of tax 10 notifications were issued for the purpose of central tax indicating the rate for various supplies of goods or services.   Similarly in respect of integrated tax 10 notifications were issued by the Government indicating the rate.   Likewise 10 notifications were issued by the Central Government fixing the tax rate for the purpose of Union Territory tax.  2 notifications were issued by the Central Government fixing the rate of cess for goods and also for specified goods.

Even though the process of implementation of GST is not in complete, it is hoped that the business entity will get it success with the utmost co-operation, guidance and support of the Central Government and State Governments and Departmental Officers with the backbone of network in a successful way which will pave the economic development of India.

 

By: Mr. M. GOVINDARAJAN - July 3, 2017

 

Discussions to this article

 

Sir, What will be the procedure in case of export. ? Do we need to fill ARE-1 as it was required earlier for dispatching goods for export?

Mr. M. GOVINDARAJAN By: Rizwan Ullah
Dated: July 5, 2017

 

 

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