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GST – CONCEPT & STATUS (Updated as on 01st October 2018)

Goods and Services Tax - GST - Dated:- 3-10-2018 - GOODS AND SERVICE TAX (GST) CONCEPT & STATUS CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA AS ON 1st OCTOBER, 2018 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. .....

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market for the greater part of the productions of its own industry. If the same freedom, in consequence of the same uniformity, could be extended to Ireland and the plantations, both the grandeur of the state and the prosperity of every part of the empire, would probably be still greater than at present - Adam Smith in Wealth of Nations 1. INTRODUCTION: Whether it was uniformity of taxation and consequent free interior trade or possession of the jewel in the crown at the root of prosperity of Br .....

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rticle 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Sc .....

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it was not notified. So tax on services were continued to be levied under the residual entry, i.e. entry 97, of the Union List till GST came into force. The Union also levied tax called Central Sales Tax (CST) on inter-State sale and purchase of goods and on inter-State consignments of goods by virtue of entry 92A and 92B respectively. CST however is assigned to the State of origin, as per Central Sales Tax Act, 1956 made under Article 269 of the Constitution. 2.3 On the State side, the most imp .....

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N IN POSTINDEPENDENCE INDIA TILL GST: 3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments .....

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ed on unit, called specific duty, and on value, called ad valorem duty. The number of rates was too many with no offsetting of taxes paid on inputs leading to significant cascading and classification disputes. 3.3 The Indirect Taxation Enquiry Committee constituted in 1976 under Shri L K Jha recommended, inter alia, converting specific rates into ad valorem rates, rate consolidation and input tax credit mechanism of value added tax at manufacturing level (MANVAT). In 1986, the recommendation of .....

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with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many .....

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ore services were brought into the fold. Over the next decade, more and more services were brought under the tax net. In 1994, tax rate on three services was 5% which gradually increased and in 2017 it was 15% (including cess). Before 2012, services were taxed under a positive list approach. This approach was prone to tax avoidance . In 2012 budget, negative list approach was adopted where 17 services were out of taxation net and all other services were subject to tax. In 2004, the input tax cre .....

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n ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, .....

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ncluding on machinery and equipment; harmonization and rationalization of tax rates across States with two or three rates within specified bands; pruning of exemptions and concessions except for a basic threshold limit and items like unprocessed food; zero rating of exports, inter-State sales and consignment transfers to registered dealers; taxing inter-State sales to non-registered persons as local sales; modernization of tax administration, computerization of operations and simplification of f .....

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implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008. 4. INTERNATIONAL PERSPECTIVES ON GST / VAT: 4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is whe .....

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onsumption because the former is neutral in allocation of resources as it taxes value addition. Besides, there are certain distinct advantages of VAT. It is less cascading making the taxation system transparent and antiinflationary. From revenue point of view, VAT leads to greater compliance because of creation of transaction trails. 4.2 When compared globally, VAT structures are either overly centralized where tax is levied and administered by the Central government (Germany, Switzerland, Austr .....

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eparately are called nonparticipating provinces , whereas provinces which have teamed up with the Federal Government for tax administration are called participating provinces . 4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is ar .....

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l as tax paid on previous purchases and has again been an improvement over the previous sales tax regime. 5.2 But both the CENVAT and the State VAT have certain incompleteness. The incompleteness in CENVAT is that it has yet not been extended to include chain of value addition in the distributive trade below the stage of production. Similarly, in the State-level VAT, CENVAT load on the goods has not yet been removed and the cascading effect of that part of tax burden has remained unrelieved. Mor .....

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es place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powe .....

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y 2005. Integration of Central VAT and State VAT therefore is nothing but an inevitable consequence of the reform process. The Constitution of India envisages a federal nature of power bestowed upon both Union and States in the Constitution itself. As a natural corollary of this, any unification of the taxation system required a dual GST, levied and collected both by the Union and the States. 6. GST : A HISTORICAL PERSPECTIVE: 6.1 The Kelkar Task Force on Fiscal Responsibility and Budget Managem .....

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equest, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into .....

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servations on the report in writing. On the basis of these discussions in the EC and the written observations, certain modifications were considered necessary and were discussed with the Co-conveners and the representatives of the Department of Revenue of Union Finance Ministry. With the modifications duly made, a final version of the views of EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were then sent to the Government of India, and the comments of G .....

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the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States. 7. CHALLENGES IN DESIGNING GST: 7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like .....

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of origin where production or sale happened and not to the State where consumption happened. Many manufacturing States expressed concerns over the loss of revenue on account of shift from origin based taxation to destination based taxation. 7.2.1 An argument put forward on behalf of producing states in support of origin based taxation is that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Gov .....

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goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of consumption taxes) from increased export output. 7.3 Rate Structure and Compensation: There was uncertainty about gains in revenue after implementation of GST .....

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er GST suggested RNR (Revenue Neutral Rate). The term RNR refers to that single rate, which preserves revenue at desired (current) levels. This would differ from the standard rate, which is the rate that would apply to a majority of goods and services. In practice, there will be a structure of rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on p .....

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hat all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders and in such circumstances there must be a statutory body to which affected parties may approach for dispute resolution. The nature of such dispute resolution body was a bone of conten .....

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Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. 7.5 Alcohol and Petroleum products: Alcoholic liquor for human consumption and petroleum products are major contributor to revenue of States. As States were uncertain about impact of GST on their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor .....

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hese are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST. 8. CONSTITUTIONAL AMENDMENT: 8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the constitutional scheme. Power of taxation is assigned to either Union or States subject-wise under Schedule VII of the Constitution. While the Centre is empowered to tax goods upto the production or .....

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nt of the Constitution conferring simultaneous power on Parliament as well as the State Legislatures to make laws for levying goods and services tax on every transaction of supply of goods or services was necessary. 8.2 The Constitution (115th Amendment) Bill, 2011, in relation to the introduction of GST, was introduced in the Lok Sabha on 11th March, 2011. The Bill was referred to the Standing Committee on Finance on 29th March, 2011. The Standing Committee submitted its report on the Bill in A .....

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ly passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016. 8.4 The important changes introduced in the Constitution by the 101st Amendment Act are the following: Insertion of new article 246A which makes enabling provisions for the Union and States with respect to t .....

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evied 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. It also provides that 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. Article 270 has been amended to provide for distr .....

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have been defined. Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Council shall also require the ratification by the legislatures of one half of the States. Entries in List I and List II have been either substituted or omitted to restrict power to tax goods or service .....

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on the recommendation of the Goods and Services Tax Council. 9. GOODS & SERVICE TAX COUNCIL: 9.1 As provided for in Article 279A of the Constitution, the Goods and Services Tax Council (the Council) was notified with effect from 12th September, 2016. The Council is comprised of the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members. It shall make recommendations to the Union and the States on .....

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a specified period to raise additional resources during any natural calamity or disaster; special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand; and any other matter relating to the GST, as the Council may decide. 9.2 The 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 co .....

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il 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. 9.4 The Council has met for 30 times and no occasion has arisen so far .....

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in the Act. Composition scheme shall not be available to inter- State suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 75 lakh. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. Th .....

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tration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. (vi) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (vii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (viii) Formula and mechanism for GST Compensation Cess has been finalize .....

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o ₹ 20 lakhs, making inter State supplies; Suppliers of services, having turnover upto ₹ 20 lakhs, making supplies through e-commerce platforms. (xi) The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019. (xii) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpayers. (xiii) Supply from GTA to unregistered pers .....

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FORM GSTR-1 on a monthly basis. (xviii) In order to facilitate trade, one-time extension for furnishing of FORM GSTR-1 has been granted. For the months from July, 2017 to September, 2018, FORM GSTR-1 can be furnished till 31st October, 2018. (xix) GST Council has once again allowed the migration process for taxpayers from erstwhile tax regimes. Due dates for furnishing return in FORM GSTR-3B & FORM GSTR1 (for taxpayers with turnover more than ₹ 1.5 crore) for the months from July, 2017 .....

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stered person under Tax head instead of Fee head. (xxi) From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows: whose tax liability for that month was NIL will be ₹ 20/- per day instead of ₹ 200/- per day; whose tax liability for that month was not NIL will be ₹ 50/- per day instead of ₹ 200/- per day. (xxi) Facility has been introduced for manual filing of refund application. (xxii) Supply of services to .....

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nto the issues being faced by MSMEs and to provide solutions for the same. (xxvii) A Group of Ministers has been constituted to look into the matter of revenue mobilization. (xxviii) A Group of Ministers constituted for promoting digital payment has recommended to allow cashback to an amount equal to 20% of GST paid or ₹ 100, whichever is lower for cases where payment is made by BHIM or Rupay card. The necessary infrastructure is being developed and soon the scheme would be implemented on .....

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vices Tax (Amendment) Act, 2018, the Union Territory Goods and Services Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. The major amendments brought about by these Acts are as below: (i) Upper limit of turnover for opting for composition scheme to be raised from ₹ 1 crore to ₹ 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council. (ii) Composition dealers to be allowed to suppl .....

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h, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to ₹ 20 Lakhs from ₹ 10 Lakhs. (v) Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory. (vi) Mandatory registration is required for only those e-commerce operators who are required to collect tax at source. (vii) Registration to remain temporarily suspended while cancellation of registration is under pro .....

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idened, and it would now be made available in respect of the following: (a) Most of the activities or transactions specified in Schedule III; (b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft (c) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and (d) Goods or services which are obligatory for an employer to provide to its em .....

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two years, respectively. (xiii) Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI. (xiv) Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. (xv) Recovery can be made from distinct persons, even if present in different State/Union territories. (xvi) The order of cross-utilisation of input .....

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l, which remains unutilised in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue. (xix) In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months period, fifty per cent. of the same, but not .....

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the new return formats and associated changes in law. These changes have been carried out in the law vide the Central Goods and Services Tax (Amendment) Act, 2018. The main features of the new return filing format are as follows: (i) All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. (ii) The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the suppl .....

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n which a taxpayer would be shown and would be required to fill in the return would depend on his profile. (v) NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. (vi) There shall be quarterly filing of return for the small taxpayers having turnover below ₹ 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons - small traders making only B2C supply o .....

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t liability for the taxpayers. In order to ensure that the above changes in the Centre and the State GST laws are brought into force simultaneously, these amendments will be made effective from a date to be notified in the future. 10. THE DESIGN OF INDIAN GST: 10.1 Concurrent dual model of GST: India has adopted dual GST model because of its unique federal nature. Under this model, tax is levied concurrently by the Centre as well as the States on a common base, i.e. supply of goods or services o .....

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is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both. The inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will .....

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ment of tax or substantial blockage of funds for the inter-State supplier or recipient. (iii) No refund claim in exporting State, as ITC is used up while paying the tax. (iv) Self-monitoring model. (v) Model takes Business to Business as well as Business to Consumer transactions into account. 10.3 Tax Rates: Owing to unique Indian socio-economic milieu, four rates namely 5%, 12%, 18% and 28% have been adopted. Besides, some goods and services are exempt also. Rate for precious metals is an excep .....

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Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the r .....

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ted as part of the base year revenue. A GST Compensation Cess is levied on the supply of certain goods and services, as recommended by the GST Council to finance the compensation cess. 10.5 E-Way Bill System: The introduction of e-way (electronic way) bill is a monumental shift from the earlier Departmental Policing Model to a Self- Declaration Model . It envisages one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle free movement for transporters throughout .....

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and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government .....

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ation of registration and any other decision as may deem fit, after inquiry into the case. 10.7 Concept of Supply: GST would be applicable on supply of goods or services as against the present concept of tax on manufacture of goods or on sale of goods or on provision of services. It includes all sorts of activities like manufacture, sale, barter, exchange, transfer etc. It also includes supplies made without consideration when such supplies are made in certain specified situations. 10.8 Threshol .....

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in inter-State supplies of goods. 10.9 Composition Scheme: An optional composition scheme (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to ₹ 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit has been raised to ₹ 1.5 cro .....

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dit can be used only for paying CGST or IGST. SGST credit can be used only for paying SGST or IGST. The credit would be permitted to be utilized in the following manner: (a) ITC of CGST allowed for payment of CGST & IGST in that order; (b) ITC of SGST allowed for payment of SGST & IGST in that order; (c) ITC of UTGST allowed for payment of UTGST & IGST in that order; (d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order. ITC of CGST cannot be used for payme .....

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unds would be carried out on the basis of information contained in the returns filed by the taxpayers. 10.13 Modes of Payment: Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). 10.14 Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at .....

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e: Obligation on electronic commerce operators to collect tax at source , at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has not been operationalized wef 01st October 2018. 10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raisi .....

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llful mis-statement. 10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. 10.19 Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. 10.20 .....

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ies of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry T .....

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their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J&K. 11.2. In its 28th meeting held in New Delhi on 21.07.2018, the GST Council recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. These amendments have been passed by Parliament and have been enacted, after receiving the .....

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ate to be notified in the future. 11.3. On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST. Since then, 127 notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. 14, 28 and 1 notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 70, 74, 70 and 9 rate related notifications each have been issued under .....

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and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. The existing IT infrastructure of CBIC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise & Service Tax) would require re-engineeri .....

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. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments. 12.3 CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy a .....

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e Government. 13. GOODS & SERVICES TAX NETWORK: 13.1 Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. Infosys has been appointed as Managed Service Provider .....

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FC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04th May, 2018 has approved the change in shareholding pattern of GSTN. Considering the nature of state function performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GST .....

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GST will have a multiplier effect on the economy with benefits accruing to various sectors as discussed below. 14.2 Benefits to the exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive setoff of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. .....

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one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover upto ₹ 1 crore. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment. 14.4 Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and se .....

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set-off from the producer s point to the retailer s point than what was possible under the prevailing CENVAT and VAT regime. Certain major Central and State taxes will also be subsumed in GST and CST will be phased out. Other things remaining the same, the burden of tax on goods would, in general, fall under GST and that would benefit the consumers. 14.6 Promote Make in India : GST will help to create a unified common national market for India, giving a boost to foreign investment and Make in In .....

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xports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to .....

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therefore, lesser investment of resources and manpower in maintaining records. It will result in simplified and automated procedures for various processes such as registration, returns, refunds, tax payments. All interaction shall be through the common GSTN portal, therefore, less public interface between the taxpayer and the tax administration. It will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of trans .....

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ons approved 53,90,154 4. No. of applications rejected 8,38,725 5. Total No. of taxpayers; new + migrated (1 + 3) 1,20,11,365 6. No. of taxpayers who have opted for composition scheme 17,66,630 7. No. of 3 (B) returns filed for July, 2017 64,98,974 8. No. of 3(B) returns filed for August, 2017 70,36,589 9. No. of 3(B) returns filed for September, 2017 73,48,992 10. No. of 3(B) returns filed for October, 2017 70,73,925 11. No. of 3(B) returns filed for November, 2017 71,00,465 12. No. of 3(B) ret .....

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GSTR 1 returns filed for July, 2017 58,59,007 22. No. of GSTR 1 returns filed for August, 2017 23,96,415 23. No. of GSTR 1 returns filed for September, 2017 64,57,830 24. No. of GSTR 1 returns filed for October, 2017 24,49,611 25. No. of GSTR 1 returns filed for November, 2017 24,69,650 26. No. of GSTR 1 returns filed for December, 2017 64,00,495 27. No. of GSTR 1 returns filed for January, 2018 24,13,439 28. No. of GSTR 1 returns filed for February, 2018 23,89,232 29. No. of GSTR 1 returns fil .....

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ecember, 2017 14,35,908 38. No. of GSTR 4 returns filed for quarter January-March, 2018 14,60,366 39. No. of GSTR 4 returns filed for quarter April-June, 2018 13,49,053 16. CHALLENGES & FUTURE AHEAD: 16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges re .....

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