GST LAW_12_09_2016

Goods and
Service Tax
CMA PAWAN YADAV
R. RANJAN & CO.
8969229927
cmapawanforexcellence@gmail.com
GST

GST NETWORK (GSTN)
 Incorporated on 28.03.2013 as Section 25
private limited company with authorized
equity of Rs. 10 Crores
 Strategic control to remain with Govt
 Appointed Infosys as Managed Service
Provider (MSP)
 To function as a common pass – through
portal for taxpayers – submit registration
application, file returns and make tax
payments
 Equity Holders
Central Government – 24.5%
EC and all states together – 24.5%
Financial institutions – 51%
1

Intra-State Inter-State
Central goods and Services Tax(State GST)(CGST)
• Levy by Central Government on Intra-State Supply of Goods And/or Service
State goods and services tax(State GST)(SGST)
• Levy by State Government on Intra-State Supply of Goods And/or Service
Integrated Goods and Service Tax(Integrated GST)(IGST)
•Levy by Central Government on Inter-State Supply of Goods and/or Services
Central
GST
State GST
Integrated
GST
Proposed Dual GST Model- India.
Levy on transactions
2

Model CGST/SGST Act
Chapters-25
Sections-162
Schedules-4
Schedule I:-
Matter treated
as “Supply
without
Consideration”
Schedule II:-
Matters treated
as either
“Supply of
Goods or
Services”
Schedule III:-
Liability to be
Registered
Schedule IV:-
Activities or
Transactions in
respect of
which, CG/SG
any Local
Authority not
be regarded as
Taxable Person
(indicative list)
GST
Valuation
(Determinati
on of the
Value of
Supply of
Goods And
Services)
Rules, 2016
13

Chapters-11
Sections-33
Model IGST Act
4

New Definitions – Section 2
2 Address of delivery
3 Address of record
6 Aggregate turnover
9 Appellate Tribunal
11 Appropriate Government
40 Electronic cash ledger
41 Electronic credit ledger
46 Fixed establishment
47 Fund
75 Place of Business
78 Principal place of business
105 Usual place of residence
106 Valid Return
107 Work contract
108 Year = FY
109 Zero Rated Supply
Model CGST/SGST Act
5

Subsuming of Existing Taxes
CGST SGST IGST
• Central Excise
• Additional
duties of
Custom
(CVD/SAD/AED)
• Service Tax
• Surcharges and
all cesses
• VAT/sales tax
• Entertainment
Tax
• Luxury Tax
• Lottery Tax
• Entry Tax
• Purchase Tax
• Goods and
passenger Tax
• Tax on vehicle
• Electricity,
banking, Real
state
• CST
16

Repeal and Saving
7
Section 140(1) – The (State) General Sales Tax/Value Added Tax Act,
the Central Excise Act 1944, and the Central Excise Tariff Act,1985
shall apply only to goods included in Entries 84 and 54 of the Union
List and the State List respectively of Schedule VII to the Constitution
of India, 1950.
Clause 17 the
Constitution
Amendment Bill,
2014 stipulates
amendment in
Schedule VII of
the Constitution
of India,1950
Entry 84 of
List and
Entry 54 of
List II are
proposed to
be
substituted
84, Duties of excise only on the following
goods:-
(a)Petroleum crude;
(b)High speed diesel;
(c)Motor sprit(commonly known as petrol);
(d)Natural gas;
(e)Aviation turbine fuel; and
(f)Tobacco and tobacco products
54, Tax on sale of petroleum crude, high
speed diesel, motor spirit (commonly
known as petrol), natural gas, aviation
turbine fuel and alcoholic liquor for human
consumption, excluding inter-state sale or
international sale

Repeal and Saving
8
 Future of Central Sales Tax Act?
 Centre retains the power to tax inter-state sale/consignment of
goods
 Entry 92A and Entry 92B of Union List (power to levy tax on interstate
sale/consignment of goods)- retained
 Article 269 (taxes on interstate sale/consignment of goods to be levied
by Union but assigned to States) amended to add. “except as provided
in Article 269A” (GST on interstate supplies).
 Central Sales Tax Act neither repealed nor restricted under the
model law
 Can Central government levy sales tax on inter-state sales/works
contracts in future since entry 92A retained and CST Act not
repealed?

Important Definitions
9
 Person Sec – 2(74)
 Taxable Person Sec – 2(96) Sec 9
 Agriculture Sec – 2(7)
 Agriculturist Sec – 2(8)
 Reverse Charges Sec – 2(85)
 Aggregate Turnover Sec – 2(6)
 Goods Sec – 2(48)
 Services Sec – 2(88)
 Actionable Claim Sec – 2(1)
 Intangible Property Sec – 2(59)
 Input Service Distributor Sec – 2(56)
 Time of Supply of Goods Sec – 2(101) Sec 12
 Time of Supply of Services Sec – 2(102) Sec 13
 Work Contract Sec – 2(107)
 Job Work Sec – 2(62)
 Casual Taxable Person Sec – 2(21)

Goods and Services
10
 GST - Supply of Goods and Services
• Article 366(12A) ‘Any tax on Supply of Goods or Services or both
except taxes on supply of alcoholic liquor for human consumption.’
• Article 366(12) “Goods” includes all materials, commodities and articles.
• Article 366(26A)  “Services” means anything other than goods.

Explanation
11
 Meaning of Goods in GST
• The term “goods” has been defined under section 2(48) of Model CGST / SGST Act, 2016 as
under
• “Goods” mean every kinds of movable property other than actionable claim and money but
includes securities, growing crops, grass and things attached to or forming part of the land which
are agreed to be severed before supply or under the contract of supply.
• The term “movable property ” shall not include any intangible property.
 Meaning of Services in GST
• The term “services” has been defined under section 2(88) of Model CGST / SGST Act, 2016 as
under
• “Services” means anything other than goods.
• Services include intangible property and actionable claim but does not include money.
 Whether Immovable property is service: (any rights or usages of Immovable property)
 Actionable claim is a service (Sec 65B(44) of the finance Act, 1994)
• (Unsecured Debt, Right to recover insurance money, claim for arrears of rent etc)

Person
12
 Person – Sec 2(74)
 An individual
 HUF
 Company
 Firm
 LLP
 AOP / BOI (I/OI)
 Any corporation established by or under any central, state or Provincial Act or a govt
company as defined in sec 2 (45) of the companies act, 2013
 Any body corporate incorporated by or under the laws of a country outside India.
 Co-operative society
 Local authority
 Government
 Society , Act 1861
 Trust and
 Every artificial juridical person, not falling within any of the preceding sub clause.

 Taxable Person 2 (96)
Taxable person shall have the meaning as assigned to it in section 9 of this Act
 Taxable Person
 (Sec-9)
• Taxable person means a person who carries on any business at any place in
India/State of ___
• Who is registered
• Required to be registered under Schedule III
• CG/ SG/ Local Authority ( Except for activities specified in Schedule IV)
• Agriculturist shall not be considered as a taxable person
 Points:-
 Person: Sec 2 (74)
 Business: sec 2 (17)
 Agriculture: Sec 2 (7) & Agriculturist: Sec 2 (8)
Taxable Person
13

 Taxable Person – Exclusions
 (Sec-9)
• Employee providing services to his employer in the course of, or in relation to his
employment
• Any person engaged in business of exclusively supplying Goods and/ or Services, not
liable to tax.
• Importation of Services under reverse charge for personal use for a specified
amount.
Taxable Person – Exclusions
14

 Taxable Person – Exclusions
• Threshold Exemption for Registration: Aggregate Turnover > Rs. 9 Lakhs (Rs. 4
Lakhs for North-Eastern States including Sikkim)
• Threshold Exemption for Taxability: Aggregate Turnover > Rs. 10 Lakhs (Rs. 5 Lakhs
for North- Eastern States including Sikkim)
Taxable Person – Exclusions
15

 Agriculture - Sec 2(7)
Does not includes
 Dairy Farming,
 Poultry Farming,
 Stock breeding,
 The mere cutting of wood or grass,
 Gathering of fruit,
 Raising of man-made forest or rearing of seedlings or Plant
 Agriculturist - Sec 2(8)
• Agriculturist means a person who cultivates land personally, for the purpose of
agriculture.
Agriculture
16

 Sec 7:
 The Central/State goods and services Tax (CGST/SGST) will be levied on all intra-
State supplies of goods and/or services at the rate specified in the Schedule
 The Integrated Goods and Services tax will be on all supplies of goods and /or
services made in the course of inter-State trade or commerce at the rate specified in
the Schedule
 Reverse Charge:
 Tax under reverse charge will be levied on certain categories of supply of goods
and/or services and the tax thereon shall be paid by the person receiving such goods
and/or services. Sec 2(85)
Levy and Collection
17

 Aggregate Turnover – Meaning
 Sec-2(6)
• “Aggregate Turnover” means the aggregate value of all taxable and non-taxable
supplies, exempt supplies and exports of goods and/ or services of a person having
the same PAN, to be computed on all India basis and excludes taxes, if any, charged
under the CGST Act, SGST Act and the IGST Act, as the case may be;
• Explanation:- Aggregate turnover does not include the value of supplies on which
tax is levied on reverse charge bases and the value of inward supplies.
Aggregate Turnover
18

 Composition Levy
 (Sec-8)
• Thresholds limit of aggregate Turnover Rs.50 Lakhs.
• Scheme to be opted for all Units under same PAN
• Tax would be paid not less than 1%
• Tax would not be charged and collected from Customer
• Not entitled to take input tax credit.
 Points to be noted that:-
 Not Applicable- Inter-State Supplies/ Reverse Charge
 Return: GSTR 4 by 18th of Month, following Next Quarter
 Issue: - Sector??
 Section 146 and Section 147
Composition Scheme
19

 Taxable Person - Compulsory Registration
• Inter-State Supplies of Goods and Services.
• Casual taxable Person
• Reverse Charge
• Non-Resident Taxable Person
• TDS Deductor
• Agent supplying Goods/ Services
• ISD
• Persons supplying Goods/ Services, other than branded Services, though e-
commerce operator
• E-commerce Operator
• Aggregator supply services under his Trade/ Brand name
• Other person or class or Persons, as notified
Compulsory Registration
20

 Filing of Return
• Self-assessment of tax liability by the registered taxable persons [Section 27(2)]
• Common E-Return for CGST, SGST & IGST
• Separate returns for different categories of taxpayers
• Normal/Regular Taxpayer (GSTR-1,2,3& 8)
• Compounding Taxpayer (GSTR-4 & 8)
• Foreign Non-Resident taxpayer (GSTR-5)
• Input Service Distributor (GSTR-6)
• Tax Deductor (GSTR 7)
20th day of the succeeding month
18th day after the end of quarter
7th day after expiry of registration
8. Filing of Return
(Sec 25 to 34) Summary
21

 Filing of Return
• Furnishing details of outward supplies [Section 25]
• Furnishing details of inward supplies [Section 26 ]
• Returns [Section 27 ]
• Payment of due tax is must for filing valid return [Section 27(3)]
• First Return to be filed by all registered taxable persons [ Section 27A]
• Claim of input tax and provisional acceptance thereof [Section 28 ]
• Matching, reversal and re-claim of input tax credit [Section 29 ]
• Matching, reversal and re-claim of deduction in output tax liability [Section 29A ]
• Annual Return (GSTR-8) [Section-30]
• Final Return [Section 31]
• Notice to return defaulters [Section 32]
• Levy of late fee [Section 33] ( Rs. 100 per day Max. Rs. 5000)
• Tax return preparers [Section 34]
8. Filing of Return
22

 Meaning and scope of supply (Sec-3)
1. Supply of goods and/or services includes all forms of supply such as:
Sale, license,
Transfer, rental,
Barter, lease ,
Exchange, disposal
Made or agreed to be made for a consideration by a person in the course or furtherance of
business.
2. Importation of services for a consideration or without consideration, and whether or not the
course or furtherance of business
3. A supply specified in schedule 1, made or agreed to be made without consideration
Meaning of “Supply”
23

 Meaning and scope of supply (Sec-3)
4. Transactions specified in Schedule II
5. Where a person acting as an agent, the transaction between such principal and
agent shall be deemed to be a supply
6. The supply of any branded service by an aggregator under a brand name or
trade name owned by him shall be deemed to be a supply of the said service by
the said aggregator
7. Transaction specified by the Central or a State government may upon
recommendations of the Council.
Meaning of “Supply”
24

 Schedule-I : Matters to be treated as supply without consideration
1. Permanent transfer/disposal of business assets. (E.g. Permanent transfer of AC to employee.)
2. Temporary application of business assets to private or non-business use. (E.g. Permanent
transfer of AC to employee.)
3. Services put to a private or non-business use. (E.g. Doctor providing free services to friends will
be treated as supply.)
4. Assets retained after deregistration. (E.g. after liquidation of business, laptop taken by the owner
will be a supply.)
5. Supply of goods and/or services by a taxable person to another taxable or non taxable
person in the course or furtherance of business. (E.g. buy one get one free, will come within the scope
of GST.)
Schedule-I
25

 Schedule II: Matters to be treated as supply of goods or services
1. Transfer
i. Transfer the title in goods is a supply of goods
ii. Transfer of goods or transfer of right in goods or transfer of undivided share in the transfer of title
thereof, is a supply of services
iii. Transfer of title in goods under an agreement of hire purchase/purchase under installment is
supply of goods.
2. Land and Building
i. Lease, tenancy, easement, license to occupy land is a supply of services.
ii. Lease or letting out of the building including a commercial, industrial or residential for complex for
business or commerce, either wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is being applied to another person’s goods is a supply of services.
Schedule II
26

4. Transfer of business assets
1. Business assets transferred or disposed of, whether or not for a consideration is a supply of goods
2. Business assets are put to any private use or are used, whether or not for a consideration is a supply of
services.
3. Business assets of a taxable person, are sold by any creditors to recover any debt owed by the taxable
person is deemed to be supply of goods in the course or furtherance of his business.
4. Person ceases to be a taxable person, business assets shall be deemed to be supplied by him in the
course or furtherance of his business immediately before he ceases to be a taxable person, unless:
a) The business is transferred as a going concern to another person; or
b) The business is carried on by a personal representative who is deemed to be a taxable person.
Schedule II
27

5. Declared Services
List of declared services are covered in Schedule II and will be considered in supply of services.
a) Renting of immovable property.
b) Construction of complex, building, civil structure or a part thereof, including a complex or building
intended for sale to a buyer, wholly or partly.
c) Temporary transferor permitting the use of enjoyment of any intellectual property right;
d) Development, design, programming, customization, adaptation, up gradation enhancement,
implementation of information technology software;
e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
Schedule II
28

5. Declared Services
List of declared services are covered in Schedule II and will be considered in supply of services.
f) Works contract including transfer of the right to use any goods for any purpose (whether or not for a
specified period) for cash, deferred payment or other valuable consideration;
g) Supply, by way of goods, being food or any other article for human consumption or any drink
h) Supply, by way of goods, being food or any other article for human consumption or any drink
6. Supply of goods by any unincorporated association or body of persons to a member
Supply of goods by any unincorporated association or body of persons to a member thereof for cash,
deferred payment or other valuable consideration to be treated as supply of goods.
Schedule II
29

Supply of Goods Vs Supply of Services
Schedule II
Nature of Transactions Supply of Goods or Services
1. Any transfer of the title in goods Supply of Goods
2. Any transfer of goods or of right
in goods or undivided share in
goods without the transfer of title
thereof
Supply of Services
3. Any transfer of title in goods
under an agreement which
stipulates that property in goods will
pass at future date upon payment of
full consideration as agreed, - (Hire
Purchase)
Supply of Goods
30

Supply of Goods Vs Supply of Services
Schedule II
Nature of Transactions Supply of Goods or Services
4. Renting of immovable property
5. Construction Services
6. Works Contract Services
7. Information Technology Services
8. Agreeing to the Obligation to refrain
from an act
9. Transfer of the right to use any
goods for any purpose
10. Supply of food in a restaurant
Supply of Services
11. Supply of goods by any
unincorporated association or body of
persons to a member thereof for cash,
deferred payment or other valuable
consideration.
Supply of goods
31

 Sec 42 Accounts and Records:-
Every registered person shall keep and maintain, at his principal place of business, as mentioned in the
certificate of registration.
Accounts shall be maintained and recorded in electronic form. Commissioner/Chief Commissioner may permit to
maintain records in any other manner
Records to be maintained of the following
• Production and Manufacture of goods.
• Inward and Outward Supply/Services.
• Stock of Goods
• Input tax credit availed
• Output tax payable/paid
 Commissioner/Chief Commissioner may notify to maintain additional records.
 If Turnover exceeds the prescribed limit then Accounts shall be audited by the Chartered Accountant / Cost
Accountant. Submit report to PO a copy of audited statement and reconciliation statement.
 Sec 43 Period of Retention of accounts:-
 Every registered person shall retain them until the expiry of sixty months from the last date of filling of Annual
Return for the year pertaining to such accounts and records.
11. Accounts and Records
32

 Assessment
 Section 44 - Self Assessment
 Section 44A –Provisional Assessment
 Section 45 – Scrutiny of Returns (30 days 49,50,60)
 Section 46- Assessment of non filers of Returns
 Section 47 – Assessment of unregistered persons
 Section 48- Summary Assessment
12. Assessment
33

 Audit
 Section 2(14) Audit means detailed examination of records, etc.
 Sec 49 - Audit by tax authorities: may undertake audit of the business transactions of any
taxable person for such period, at such frequency and in such manner as may be prescribed.
 Sec 50 - Special Audit : Authorities may direct such taxable person by notice in writing to get his
records by a chartered accountant or a cost accountant as may be nominated by the
(Commissioner) in this behalf.
13. Audit
34

• Section2 (58):- ‘Input Tax Credit’ means credit of Input tax.
• Section 2 (57):- ‘Input Tax’, in relation to any taxable person, means the IGST and CGST/SGST
charged on any supply of goods and/ or course or furtherance of his business.
• Section2 (57):- Input tax includes tax paid on reverse charge basis.
• Section 2(54):- Input means any goods, other than Capital goods, used or intended to be used
by a supplier for making an outward supply in course or furtherance of business.
• Section2 (55):- ‘Input Service’ means any service used or intended to be used by a supplier
for making an outward supply in the course or furtherance of business
• 16 Manner of taking input tax credit
• 16A Taking input tax credit in respect of inputs sent to job work
• 17 Manner of distribution of credit by Input Service Distributor
• 18 Manner of recovery of credit distribution in excess.
5. Input Tax Credit
(Sec 16 to 18) summary
35

 Section 23: Tax Invoice
• A Registered taxable person supplying:-
• Taxable goods shall issue, at the time of supply, a tax invoice showing the description, quantity and value of
goods, the tax charged thereon and such other particulars as may be prescribed;
• Taxable services shall issue a tax invoice, within the prescribed time, showing the description, the tax charged
thereon and such other particulars as may be prescribed:
 Provided that a registered taxable person may issue a revised invoice against the invoice already issued during
the period starting from the effective date of registration till the date of issuance of certificate of registration to him:
 Provided further that a registered taxable person supplying non-taxable goods and/or services or paying tax under
the provisions of section 8 shall issue, instead of a tax invoice, a bill of supply containing such particulars as may
be prescribed.
• Explanation:-The expression “tax invoice” shall be deemed to include a document issued by an Input Service
Distributor under Section17, and shall also include any supplementary or revised invoice issued by the supplier in
respect of a supply made earlier.
• Section 2(35): Definition of Credit Note
• “Credit note” means a document issued by a taxable person as referred to in sub-section (1) of section 24;
• Section 2(36): Definition of Debit Note
• “Debit note” means a document issued by a taxable person as referred to in sub-section (2) of section 24;
 Section 23A: Amount of tax to be indicated in tax invoice and other documents
 Section 24: Credit and Debit Notes
7. Tax Invoice, Credit and Debit Notes
36

 Time of Supply of Goods and Services
Why time of supply?
• Taxable event that attracts GST levy is supply of goods and/ or provision of services.
• CGST/SGST liability at the time of supply of goods/services within the State.
• IGST for inter-state supplies of goods/services.
 Time of supply of goods-Sec -12
Earliest of the following dates:
 Goods required to be removed: Date on which the goods are removed for supply to the recipient- moulds removed after use 3 yrs?? Or
 Where the goods not required to be removed: Date when goods made available to buyer.
 Goods not required to be removed when physically not capable of being moved- site works; or
 Date of issue of invoice by supplier: Supply is deemed to be made or
 Date of receipt of payment- Supply is deemed to be made to extent covered by payment.
 Time of supply of Service Sec -13
 Invoice issued within prescribed period:
Earliest of – date of issue of invoice or receipt of payment;
 (Prescribed period =30 days from the date of receipt of advance or date of completion of service.)
 Invoice not issued within prescribed period:
Date of completion of the provision of service or the date of receipt of payment, whichever is earlier;
 Where above NA: Date on which the receipt of services shown in books of account.
 Change in rate of tax in respect of supply of services Sec -14
 Value of Taxable Supply Sec -15
4. Time and Value of Supply
37

 Place of Supply of Goods and Services
 Place of supply of Goods:-
Sec 5(2A) Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third
person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of
documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the
place of supply of such goods shall be the principal place of business of such person.
Section 5(2) - Where the supply involves movement of goods, whether by the supplier or the recipient or by any other
person, the place of supply of goods shall be the location of the goods at the time at which the movement of goods
terminates for delivery to the recipient.
Section 5(4):- Where the goods are assembled or installed at site, the place of supply shall be the place of such installation
or assembly.
 Place of supply of Services:-
• Services in respect of goods which are required to be physically made available by the recipient – place of provision:
default rule- location of receiver
• Online information and database access and retrieval services (Rule 9(b) of POPS Rules) –place of provision:
Default rule location of receiver/ where telecom connection installed.
• Intermediary Services (Rule 9(c) of POPS Rules) - place of provision.
Default rule – location of the receiver.
• Supply of Telecommunication Service under the Draft GST Law. No specific rule was provided for Telecommunication
Services under the POPS Rules (although the same was defined)
• Supply of service of training and performance appraisal. However, no specific rule made for services of online training
• Advertisement services provided to the Government.
Place of Supply
38

 Section:-15 Value of Supply- Transaction Value
 Transaction Value means:-
• Price actually paid or payable for the supply of goods/services
• Supplier and recipient of supply are not related
• Price is the sole consideration.
Includes:-
• Any amount which supplier is liable to pay but incurred by recipient
• Free/reduced price supplies by recipient
• Royalty & license fees related to the supply as a condition of supply
• Any taxes, duties, fees, charges levied other the SGST,CGST or IGST
• Incidental expenses such as a commission and packing etc. incurred at the time of or before
deliver of goods.
• Subsidies linked to the supply
• Any reimbursable expenditure or cost incurred by supplier and charged in relation to the supply of
goods After supply discount or incentive
Excludes:-
• Discount allowed before or at the time of supply in the course of normal trade practice.
• Post supply discount if agreed and known at the time of supply.
4. Transaction Value
39

 Valuation Rules
• Rule 6 – Residual Method
• If value cannot be determined under the provisions of Rule 5, value shall be determined using
reasonable means consistent with the principles and general provisions of these rules.
• Rule 7- rejection of declared value
• When proper officer has reason to doubt the truth or accuracy of the declared value, he may reject
the value after providing a reasonable opportunity of being heard to supplier, if he is not satisfied
with the declared value then he shall proceed to determine the value as per provisions of Rule 4,
5,6 sequentially.
• Rule 8- Valuation in certain cases
• Expenditure or costs incurred by the service provider as a pure agent of the recipient of service
shall be excluded from the value of taxable service subject to conditions.
• Value of services provided by money changer shall be determined as follows:
• If currency exchanged in INR – Difference between conversion rate and RBI reference rate
multiplied by number of units.
• If RBI reference rate multiplied by number of units.
• If INR is not involved then 1% of lesser of the amount person would have received in INR as per
RBI rate.
Valuation Rules
41

 Section 35- Payment of tax, interest, penalty and other amounts.
 (1) Every deposit made towards
• Tax,
• Interest, penalty,
• Fee or any other amount
 By a taxable person
 By internet banking or by using credit/debit cards or NEFT or RTGS or any other mode,
• Subject to such conditions and restrictions as may be prescribed in this behalf,
• Shall be credited to the electronic cash ledger (Defined u/s 2(40) of such person to be
maintained in the manner as may be prescribed.
Explanation – The date of credit to the account of the appropriate Government in the authorized bank shall be
deemed to be the date of deposit.
 (2) The input tax credit as self –assessed in the return of a taxable person shall be credited to his electronic credit
ledger (Section 2(41) to be maintained in the manner as may be prescribed.
 (3) The amount available in the electronic cash ledger may be used for making any payment towards tax, interest,
penalty, fees or any other amount payable under the provisions of the Act or the rules made there under in such
manner and subject to such manner and subject conditions and within such time as may be prescribed.
 Section 36- Interest on delayed payment of tax
 Section 37- Tax Deductions at source
9.Payment of tax, interest, penalty
42

 Branch Transfer
• As per Section 3(c) of Model GST law read with propose ‘Schedule I of GST Law’ ,a
supply of goods by a taxable person to another taxable person or non-taxable person
in the course of furtherance of business without consideration is also included within
the ambit of ‘supply’
• In other words, proposed Schedule I cover the transaction of stock transfer which is
without consideration.
• Moreover, as per proposed Section 162 C O Model GST law; any input credit
reversed prior to the appointed day shall not be admissible as credit of input tax
under the GST law. Therefore, any material which remains transferred before the
appointed day should be brought back to claim the reversal of Input tax credit based
on other economic condition.
Branch Transfer
43

 Import and Export of Goods and Services
Section 2(2) words and expressions not defined in this Act shall have the meaning assigned to them in the
Central Goods and service Tax Act, 2016
Terms “Export of gods” and “import of goods” have been defined as under vide Section 2 of the central GST
Act, 2016:
“Export of Goods” with its grammatical variations and cognate expressions, means taking out of India to a
place outside India- Section 2(43)
“Import of Goods” with its grammatical variations and cognate expressions, means bringing and India from
place outside India 2(51).
Export and import of service has been defined under Section 2 of the GST Law which has been
reproduced as under:
• The supply of any service shall be treated as an “import of service” if,
 The supplier of service is located outside India,
 The recipient of service is located in India,
 The place of supply of service is in India, and
 The supplier of service and the recipient of service are not merely establishments of a distinct person;
Explanation 1:- An establishment of a person in India and any of his other establishment outside India shall
be treated as establishments of distinct persons.
Explanation 2:- A person carrying on a business through a branch or agency or representational office in any
territory shall be treated as having an establishment in that territory.
Import and Export of Goods and
Services
44

 Section-116 GST compliance rating
 Section-117 Obligation to furnish Information Return
 Section-118 Penalty for failure to furnish information return
 Section-119 Power to collect statistics
 Section-120 Disclosure of information required under Section 119
 Section-121 Test purchases of goods and/or Services
 Section-122 Drawl of Samples
 Section-123 Burden of Proof
 Section-124 Persons discharging functions under the Act be deemed to be public servants
 Section-125 Indemnity
 Section-126 Disclosure of Information by a public servant
 Section-127 Publication of Information respecting persons in certain cases
 Section-128 Assessment proceeding, etc not to be invalid on certain grounds
 Section-129 Rectification of mistakes or errors apparent from Record
 Section-130 Bar of jurisdiction of civil courts
 Section-131 levy of fees
 Section-132 Power of Central or State Government to make Rules
 Section-132A General Power to make Regulations
 Section-133 Delegation of Powers
 Section-134 Instructions to GST Officers
 Section-135 Removal of Difficulties
 Section-136 Service of Notice in certain circumstances
 Section-137 Rounding off of Tax etc
 Section-138 Effect of amendments etc, of rules, Notifications or orders
 Section-139 Publication of Rules and Notifications and lying of Rules before Parliament/State Legislature
23. Miscellaneous Provisions
45

 Sec 141 General provision
 Sec 142 Migration of existing taxpayers to GST
 Sec 143 Amount of CENVAT Credit Carried forward in a return to be allowed as input tax credit
 Sec 144 Unavailed CENVAT credit on capital goods, not carried forward in a return, to be allowed in certain situations
 Sec 145 Credit of eligible duties and Taxes in respect of inputs held in stock to be allowed in certain situation
 Sec 146 Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from
composition scheme
 Sec 147 Amount payable in the event of a taxable person switching over to composition scheme
 Sec 148 Exempted goods returned to the place of business on or after the appointed day
 Sec 149 Duty paid goods returned to the place of business on or after the appointed day
 Sec150 Duty paid goods returned to the place of business on or after the appointed day
 Sec151 Semi-finished goods removed for job work and returned on or after the appointed day
 Sec 152 Finished goods removed for carrying out certain processes and returned on or after the appointed day
 Sec153 Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract
 Sec154 Pending refund claims to be disposed of under earlier law
 Sec155 Claim of CENVAT credit to be disposed of under the earlier law
 Sec156 Finalization of proceedings relating to output duty liability
 Sec157 Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceeding
 Sec158 Treatment of the amount recovered or refunded pursuance to revision of returns
 Sec159 Treatment of long term construction/works contracts
 Sec160 Progressive or periodic supply of goods or services
 Sec161 Treatment of retention payments
 Sec162 Credit distribution of service tax by ISD
• 162A Tax paid on goods lying with agents to be allowed as credit 162B Tax paid on capital goods lying with agents to be
allowed as credit 162C Treatment of branch transfers 162D Goods sent on approval bases returned on or after appointed day
• 162E Deduction of Tax Source
25. Transitional Provisions
(Sec 141 to 162E) Summary
46

GST LAW_12_09_2016

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