Analysis of Model GST Law of India
Analysis of Model GST Law : General Points
Need for GST
Taxes Subsumed in GST
Model GST Law
Empowered Committee of State Finance Ministers has released the ‘Model Goods and Services (GST) Law’ on 14th June 2016
The GST would extend to whole of India
The concepts of ‘sale of goods’ and ‘rendering of services’ , Manufacturing of goods, have been replaced with ‘supply of goods’ and ‘supply of services’ respectively
Separate Model Acts for the intra-State and inter-State transactions provided
Registration
Every person would be required to obtain registration in each State he operates
A person having multiple business verticals in a State may obtain separate registrations for each verticals in that State
Taxable person means a person who carries on any business at any place in India and is registered or required to be registered
Threshold limit prescribed of Rs. 10 lakhs and Rs. 5 lakhs (for North Eastern States and Sikkim). However as per the decision of GST Council , this limit has been raised to Rs 20 Lakh and Rs 10 Lakh respectively.
Central/ State Government may be regarded as a taxable person in respect of activities engaged as public authorities except otherwise specified
Taxes
Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) would be levied on all intra-State supplies of goods and services, at a rate to be notified
Integrated Goods and Services Tax (IGST) shall be levied on inter-State supplies of goods and services at a rate to be notified
Invoice
Every person making a taxable supply of goods or services would have to issue tax invoice containing the prescribed particulars
Adjustment in tax charged in tax invoice can be made by issuing a credit note containing the prescribed particulars and within the prescribed time
Input Tax credit
Electronic Cash Ledger and Electronic Credit Ledger is being introduced where all transactions of an assessee shall be recorded and maintained
The input tax credit shall be credited in the electronic ledger as self assessed in the return and it may be used for the amount payable i.e. tax, interest, penalty etc
Input tax credit of CGST shall not be utilised for the payment of SGST and vice versa
Credit shall be allowed only in respect of the inputs attributable to taxable and zero rated supplies
Unutilised credit available on account of exports (whereby no export duty is payable) can be claimed as refund
Input credit Mismatch
Return : Every taxable person(except certain person) in respect of each registration shall
furnish details of outward supplies by 10th of the succeeding month;
furnish details of input supplies by 15th of the succeeding month;
furnish a return of outward supplies, inward supplies, input tax credit availed, tax payable and tax paid by 20th of the succeeding month
No return can be filed unless the tax due as per the return has been deposited and consequently, his customers shall not be able to avail credit of the tax charged by him
No return can be filed unless a valid return for the previous tax period has been filed
In addition to the above mentioned periodic returns, each taxable person shall be required to file an Annual return as well
Read also GST Return filing Process in India
Composition Scheme
Composition Scheme available to a registered taxable person involved in intra-State supply of goods and services whose aggregate turnover is less than Rs. 50 lakhs (no availing credit and no recovery from the recipient) for more Read Composition Scheme under GST : Complete Analysis
Appeal
A National Goods and Service Tax Appellate Tribunal (Appellate Tribunal) will be established along with its branches (State GST Tribunals) each for every State
Analysis of Model GST Law :Matters to be treated as Supply of Goods or Services
Any transfer of the title in goods or any transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, would qualify as a supply of goods
Any transfer of goods or of right in goods or of undivided share in goods without the transfer of title thereof, would qualify as a supply of services
Any lease, tenancy, easement, licence to occupy land would qualify as a supply of services
Any lease or letting out of the building including a commercial, industrial or residential complex or business or commerce, either wholly or partly, would qualify as a supply of services
Any treatment or process which is being applied to another person’s goods would qualify as a supply of services
Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods would qualify as a supply of services
Analysis of Model GST Law : Time of Supply
The liability to pay CGST/SCST on GOODS shall arise at the time of supply. for more read Time of Supply under GST- Analysis
Analysis of Model GST Law : Value of Taxable Supply
Value of taxable supply shall be the transaction value when supplier and recipient are not related and price is sole consideration
The transaction value shall include the following
any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods and/or services;
the value, apportioned as appropriate, of such goods and/or services as are supplied directly or indirectly by the recipient of the supply free of charge or at reduced cost for use in connection with the supply of goods and/or services being valued, to the extent that such value has not been included in the price actually paid or payable
royalty and technical fees which was not included in the price actually paid or payable
any taxes, duties, fees and charges levied under any statute other than the SGST Act or the CGST Act or the IGST Act
incidental expenses such as commission or packaging in respect of supply of goods or service
subsidies provided in any form or manner, linked to the supply
any reimbursable expenditure or cost
any discount or incentive allowed after the supply has been effected (however if such post supply discount was known before the time of supply and specifically linked with invoices, the same shall not be included in the transaction value)
Analysis of Model GST Law : Registration Forms
Following draft registration forms has been provided via draft registration formats for GST
Sr. No
Form Number
Content
1
GST REG 01
Application for Registration under Section 19(1) of Goods and Services Tax Act, 20–
2
GST REG 02
Acknowledgement
3
GST REG 03
Notice for Seeking Additional Information/ Clarification/ Documents relating to Application for<<Registration/Amendment/Cancellation>>
4
GST REG 04
Application for filing clarification/additional information/ document for <<Registration/Amendment/Cancellation/ Revocation of Cancellation>>
5
GST REG 05
Order of Rejection of Application for <<Registration /Amendment / Cancellation/ Revocation of Cancellation>>
6
GST REG 06
Registration Certificate issued under Section 19(8A) of the Goods and Services Tax Act, 20–
7
GST REG 07
Application for Registration as Tax Deductor or Tax Collector at Source under Section 19(1) of the Goods and Service Tax Act, 20–
8
GST REG 08
Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source under Section 21 of the Goods and Service Tax Act, 20–.
9
GST REG 09
Application for Allotment of Unique ID to UN Bodies/Embassies /any other person under Section 19(6) of the Goods and Service Tax Act, 20–.
10
GST REG 10
Application for Registration for Non Resident Taxable Person.
11
GST REG 11
Application for Amendment in Particulars subsequent to Registration
12
GST REG 12
Order of Amendment of existing Registration
13
GST REG 13
Order of Allotment of Temporary Registration/ Suo Moto Registration
14
GST REG 14
Application for Cancellation of Registration under Goods and Services Tax Act, 20–.
15
GST REG 15
Show Cause Notice for Cancellation of Registration
16
GST REG 16
Order for Cancellation of Registration
17
GST REG 17
Application for Revocation of Cancelled Registration under Goods and Services Act, 20–.
18
GST REG 18
Order for Approval of Application for Revocation of Cancelled Registration
19
GST REG 19
Notice for Seeking Clarification/Documents relating to Application for << Revocation of Cancellation>>
20
GST REG 20
Application for Enrolment of Existing Taxpayer
21
GST REG 21
Provisional Registration Certificate to existing taxpayer
22
GST REG 22
Order of cancellation of provisional certificate
23
GST REG 23
Intimation of discrepancies in Application for Enrolment of existing taxpayer
24
GST REG 24
Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under Goods and Services Tax Act 20–
25
GST REG 25
Application for extension of registration period by Casual / Non-Resident taxable person.
26
GST REG 26
Form for Field Visit Report
Analysis of Model GST Law : GST Return
Sr.No
Form
Who to File ?
What to file?
When to File ?
1
GSTR-1
Registered taxable supplier
Outward supplies
10th of the month succeeding the tax period
2
GSTR-2
Registered taxable recipient
Inward supplies /Purchases
15th of the month succeeding the tax period
3
GSTR-3
Registered taxable person
Monthly Return
20th of the month succeeding the tax period
4
GSTR-4
Composition supplier
Outward supplies, inward supplies
18th of the month succeeding the Quarter
5
GSTR-5
Non-resident person
Outward supplies, inward supplies
20th of the month succeeding tax period & within 7 days after expiry of registration
6
GSTR -6
Input service distributor
details of tax invoices on which credit has been received
13th of the month succeeding the tax period
7
GSTR-7
Tax deductor
Details of tax deducted
10th of the month succeeding the month of deduction
8
GSTR-8
E commerce operator/tax collector
Details of tax collected.
10th of the month succeeding the tax period
9
GSTR-9
Registered Taxable Persons
Annual Return
31st December of the next Financial Year]
10
GSTR 9A
Taxable Person paying tax u/s 8 (Compounding Taxable Person)
Annual Return
31st December of the next Financial Year]
11
GSTR 9B
Registered Taxable Person (if Turnover Exceeds 1Crore)
Audit Report with Reconciliation Statement
31st December of the next Financial Year
12
GSTR 10
Taxable person whose registration has been surrendered or cancelled
Final return
within three months of the date of cancellation or date of cancellation order, whichever is later
13
GSTR 11
Persons having Unique Identity Number and Claiming Refund
Details of inward supplies
28th of the month following the month for which statement is filed
Analysis of Model GST Law :Transitional Provisions
Carry forward amount of CENVAT credit/VAT input tax credit in return will be allowed as Input Tax Credit
Unavailed CENVAT credit in respect of Capital Goods, which were not carried forward in return, would be allowed
Price revised upwards/downwards on or after the appointed day for transaction in goods and/or services prior to appointed day, issuance of supplementary invoice or debit note is mandatorily required within 30 days of such revision. In case of downward revision, tax liability can be reduced if corresponding input tax credit has been reduced.
Refund claim of duty/tax and interest filed before appointed day will be sanctioned in accordance with provision of earlier law; if in case rejected, amount shall lapse
In the proceeding of appeal, revision, review or reference relating to a claim for CENVAT credit found admissible under earlier law shall be refunded in cash not as Input Tax Credit
Analysis of Model GST Law : Tax Return Preparer Form
Sr No
Form No
Purpose
1
GST TRP 1
Application for Enrolment as Tax Return Preparer under GST
2
GST TRP 1A
Acknowledgement Receipt
3
GST TRP 2
Enrolment Certificate for Tax Return Preparer
4
GST TRP 3
Notice for Seeking Additional Information / Clarification / Documents for Application for Registration as Tax Return Preparer,
or,
Show cause for disqualification in case of misconduct in connection to proceeding by Tax Return Preparer
5
GST TRP 4
Order of Rejection of Application for enrolment as Tax Return Preparer/
Or Disqualification to function as Tax Return Preparer
6
GST TRP 5
List of Tax Return Preparers enrolled
7
GST TRP 6
Engagement of TRP
8
GST TRP 7
Disengagement from the assignment
Analysis of Model GST Law : GST Refund Forms
Sl. No
Form Number
Content
1.
GST RFD 01
Refund Application form
-Annexure 1 Details of Goods
–Annexure 2 Certificate by CA
2.
GST RFD 02
Acknowledgement
3.
GST RFD 03
Notice of Deficiency on Application for Refund
4.
GST RFD 04
Provisional Refund Sanction Order
5.
GST RFD 05
Refund Sanction/Rejection Order
6.
GST RFD 06
Order for Complete adjustment of claimed Refund
7.
GST RFD 07
Show cause notice for reject of refund application
8.
GST RFD 08
Payment Advice
9.
GST RFD 09
Order for Interest on delayed refunds
10.
GST RFD 10
Refund application form for Embassy/International Organizations
Free Education Guide on Goods & Service Tax (GST)
SR No
Topic -GST
Resources
1
Model GST Law
Model GST Law
2
GST Overview
Goods and Services Tax (GST): An Overview
Integrated Goods & Service Tax (IGST) Act Overview
Meaning and Scope of Supply
Time of Supply
Place of Supply of Goods and Service under GST
Valuation in GST
Levy of GST & Exemption from Tax
Job Work under Goods & Service Tax (GST)
Electronic Commerce under Goods & Service Tax (GST)
3
Transition to GST
Transitional Provisions in Goods & Service Tax (GST)
4
Registration
GST Registration FAQ’s
GST Registration Process -Video
GST -Draft Registration Rules
GST -Draft Registration Formats
5
Invoice
GST Draft Invoice Rules released by CBEC
GST Draft Invoice formats Released by CBEC
6
Input Tax Credit
Input Tax Credit under Goods & Service Tax (GST)
Concept of Input Service Distributor in Goods & Service Tax (GST)
7
Payment
GST Payment of Tax
GST Draft Payment Rules Released by CBEC
GST Draft Payment formats Released by CBEC
8
Refunds
Refund under GST
Draft GST Refund Forms released by CBEC
Draft GST Refund Rules released by Govt
9
Returns
Returns Process and matching of Input Tax Credit under GST
Draft GST Return Rules Released by Govt
Draft GST Return Formats released by Govt
10
Assessment and Audit
Assessment and Audit under GST
11
Inspection, Search, Seizure and Arrest
Inspection, Search, Seizure and Arrest under GST
12
Offences, Penalty, Prosecution & Compounding
Offences, Penalty, Prosecution & Compounding in GST
13
Demands and Recovery
Demands and Recovery under GST
14
Appeals and Review
Appeals, Review and Revision in GST
15
Advance Ruling
Advance Ruling in Goods and Service Tax (GST)
16
Settlement Commission
Settlement Commission in Goods and Service Tax (GST)
17
GST Portal
Frontend Business Process on GST Portal