Analysis of Model GST Law of India

By | October 10, 2016
(Last Updated On: October 10, 2016)

Analysis of Model GST Law of India

Analysis of Model GST Law : General Points

  • Need for GSTWhy GST
  • Taxes Subsumed in GSTTaxes Subassumed 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 creditITC Utilization under GST
    • 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 MismatchInput Credit Mismatch under GTC- Flow Chart
  • 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. NoForm NumberContent
1GST REG 01Application for Registration under Section 19(1) of Goods and Services Tax Act, 20–
2GST REG 02Acknowledgement
3GST REG 03Notice for Seeking Additional Information/ Clarification/ Documents relating to Application for<<Registration/Amendment/Cancellation>>
4GST REG 04Application for filing clarification/additional information/ document for <<Registration/Amendment/Cancellation/ Revocation of Cancellation>>
5GST REG 05Order of Rejection of Application for <<Registration /Amendment / Cancellation/ Revocation of Cancellation>>
6GST REG 06Registration Certificate issued under Section 19(8A) of the Goods and Services Tax Act, 20–
7GST REG 07Application for Registration as Tax Deductor or Tax Collector at Source under Section 19(1) of the Goods and Service Tax Act, 20–
8GST REG 08Order 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–.
9GST REG 09Application for Allotment of Unique ID to UN Bodies/Embassies /any other person under Section 19(6) of the Goods and Service Tax Act, 20–.
10GST REG 10Application for Registration for Non Resident Taxable Person.
11GST REG 11Application for Amendment in Particulars subsequent to Registration
12GST REG 12Order of Amendment of existing Registration
13GST REG 13Order of Allotment of Temporary Registration/ Suo Moto Registration
14GST REG 14Application for Cancellation of Registration under Goods and Services Tax Act, 20–.
15GST REG 15Show Cause Notice for Cancellation of Registration
16GST REG 16Order for Cancellation of Registration
17GST REG 17Application for Revocation of Cancelled Registration under Goods and Services Act, 20–.
18GST REG 18Order for Approval of Application for Revocation of Cancelled Registration
19GST REG 19Notice for Seeking Clarification/Documents relating to Application for << Revocation of Cancellation>>
20GST REG 20Application for Enrolment of Existing Taxpayer
21GST REG 21Provisional Registration Certificate to existing taxpayer
22GST REG 22Order of cancellation of provisional certificate
23GST REG 23Intimation of discrepancies in Application for Enrolment of existing taxpayer
24GST REG 24Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under Goods and Services Tax Act 20–
25GST REG 25Application for extension of registration period by Casual / Non-Resident taxable person.
26GST REG 26Form 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

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