![“Goods and services tax” means any tax on supply of goods, or
services or
4
both except taxes on the supply of the alcoholic liquor for
human
consumptio
n
Article 366(12A)
Definition of GST
Sl No Definition Article Definition
1. Goods 366(12) Includes all materials, commodities, and articles [Pre Existing Definition]
2. Service 366 (26A) Anything other than goods [Introduced vide 101st Constitutional
Amendment
Act]
3. State 366(26B) With reference to articles 246A, 268, 269,269A and Article 279A
includes a Union territory with Legislature. [Introduced vide 101st
Constitutional Amendment Act]
“Goods and Services tax” law while having unique principles, has significant elements of
prior Central and State laws; and is also inspired by VAT/GST legislation of EU, Australia,
Malaysia etc. along with International VAT/GST guidelines of OECD
GST Law from a Constitutional Perspective (1/2)](https://image.slidesharecdn.com/01012018-updatedppt-on-gst-converted-220815092720-1bc0807c/85/01012018-Updated-PPT-on-GST-converted-pptx-ppt-4-320.jpg)
01012018-Updated PPT-on-GST-converted.pptx.ppt
- 2. This presentation is for education purposes only and holds no legal validity 2
- 3. The Journey to GST Announcement of GST for the first time was made by the then Union Finance Minister, during budget of 2006-07 that it would introduced from 1 April 2010 2006 First Discussion Paper was released by the Empowered Committee 2009 Constitution (115th Amendment) Bill introduced and subsequently lapsed 2011 The Constitution (122nd Amendment) Bill was introduced in the Lok Sabha 2014 Aug 2016 The Constitution (One First was Hundred and Amendment) Act enacted March 2017 GST Council Recommends the CGST, SGST, IGST, UTGST and Compensation Cess Act April 2017 CGST, IGST, UTGST and Compensation Cess Acts passed All except passed States J&K their SGST ACT May 2017 GST Launched 1st July2017 1st GST Council Meeting Sep 2016 30th June2017 3 GST Council recommends all the rules SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K 8th July 2017 True Economic Integration of India Journey Continues… • Notifying and amending rules • Dealing with IT related issues • Revision of Rates • Clarification and communication with taxpayers
- 4. “Goods and services tax” means any tax on supply of goods, or services or 4 both except taxes on the supply of the alcoholic liquor for human consumptio n Article 366(12A) Definition of GST Sl No Definition Article Definition 1. Goods 366(12) Includes all materials, commodities, and articles [Pre Existing Definition] 2. Service 366 (26A) Anything other than goods [Introduced vide 101st Constitutional Amendment Act] 3. State 366(26B) With reference to articles 246A, 268, 269,269A and Article 279A includes a Union territory with Legislature. [Introduced vide 101st Constitutional Amendment Act] “Goods and Services tax” law while having unique principles, has significant elements of prior Central and State laws; and is also inspired by VAT/GST legislation of EU, Australia, Malaysia etc. along with International VAT/GST guidelines of OECD GST Law from a Constitutional Perspective (1/2)
- 5. GST Law from a Constitutional Perspective (2/2) 5 Bill passed by Rajya Sabha on 03.08.2016 & Lok Sabha on 08.08.2016 Notified as Constitution (101st Amendment ) Act, 2016 on 08.09.2016 Key Features: Concurrent jurisdiction for levy & collection of GST by the Centre & the States – Article 246A Centre to levy & collect IGST on supplies in the course of inter-State trade or commerce including imports – Article 269A Compensation for loss of revenue to States for five years on recommendation of GSTC – Clause 19 GST on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas & aviation turbine fuel to be levied from a later date on recommendations of GSTC
- 6. Existing Indirect Tax Structure in India Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services) • Central Excise duty • Additional duties of excise • Excise duty levied under Medicinal & Toilet Preparation Act • Additional duties of customs (CVD & SAD) • Service Tax • Surcharges & Cesses • State VAT / Sales Tax • Central Sales Tax • Purchase Tax • Entertainment Tax (other than those levied by local bodies) • Luxury Tax • Entry Tax (All forms) • Taxes on lottery, betting & gambling • Surcharges & Cesses Central Taxes State Taxes GST 6
- 7. GS T CG ST SGST/UTG ST IGS T Pre-GST Indirect tax structure in India Central Taxes Tax Administratio ns CEx/ST Act & Rules Procedur es GST CGST SGST/UTG ST IGST Single Tax- GST Single Tax Administrati on Uniform law Computerized uniform procedures GST Structure in India Multiple State Taxes Multiple State Tax Administrations Multiple Acts & Rules Multiple procedures
- 8. Alcohol for human consumption Power to tax remains withthe State Five petroleum products – crude oil , diesel, petrol, natural gas andATF GST Council to decide the date from which GST will be applicable Tobacco Part of GST but power to levy additional excise duty with Central Government Entertainment tax levied by local bodies Power to tax remains withlocal bodies 8 Outside GST !
- 9. GST Council – Constitution (Article 279A of the Constitution) Chairperson – Union FM Vice Chairperson - to be chosen amongst the Ministers of State Government Members - MOS (Finance) and all Ministers of Finance / Taxation of each State Quorum is 50% of total members States - 2/3 weightage and Centre - 1/3 weightage Decision by 75% majority Council to make recommendations on everything related to GST including laws, rules and rates etc.
- 10. GST Council - Decisions (1/5) Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States except J&K) Compounding threshold limit to be Rs. 1 Crore with - Turnover limit recommended to be raised to Rs. 1.5 Cr in 23rd GST Council meeting - to be notified after necessary amendment in the Act Government may convert existing Area based exemption schemes reimbursement based scheme – Already notified by Centre on 05.10.2017 Four tax rates namely 5%, 12%, 18% and 28% Some goods and services would be exempt Separate tax rate (3% or 0.5%) for precious metals into Categories Tax Rate Traders 1% Manufacturers 2% Restaurants 5%
- 11. Cess over the peak rate of 28% on specified luxury and sin goods To ensure single interface – all administrative control over 90% of taxpayers having turnover below Rs. 1.5 cr would vest with State tax administration 10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration taxpayers having turnover above Rs. 1.5 cr. would be divided equally between Central and State tax administration Power under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions Power to collect GST in territorial waters delegated to the States Eighteen rules on composition, registration, valuation, input tax credit etc. have been recommended and notified GST Council - Decisions (2/5)
- 12. Exemption from registration to suppliers of services making inter-State supply upto Rs. 20 lacs to suppliers providing services through an e-commerce platform provided their aggregate turnover does not exceed Rs. 20 lacs Exemption from Section 9(4) – Reverse Charge on purchase from unregistered persons No requirement on payment of tax on advance received for supply of goods by all taxpayers Exemption from tax for supplies from GTA to unregistered person Suspension of TCS / TDS provisions till 31.03.2018 Introduction of nation-wide E-way bill for inter-state supplies from 01.02.2018 and for intra-state supplies latest by 01.06.2018. Introduction of E-Wallet Scheme for exporters from 01.04.2018 and till then relief for exporters in form of broadly existing practice GST Council - Decisions (3/5)
- 13. All taxpayers to file monthly GSTR-3B & pay tax on monthly basis Taxpayers with turnover upto Rs. 1.5 Cr to file quarterly GSTR – 1 returns – Monthly for other taxpayers Time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be worked out by a Committee of Officers Late fee already paid but subsequently waived off to be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head From October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was „NIL‟ will be Rs. 20/- per day instead of Rs. 200/- per day whose tax liability for that month was not „NIL‟will be Rs. 50/- per day instead of Rs. 200/- per day GST Council - Decisions (4/5)
- 14. Facility for manual filing of refund application Facility for manual filing of application for advance ruling Supply of services to Nepal and Bhutan exempted from GST if payment not received in foreign convertible currency – such suppliers to be eligible for input tax credit Centralized UIN to be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government GST Council - Decisions (5/5)
- 15. Concurrent jurisdiction for levy & collection of GST by the Centre (CGST) and the States (SGST) Centre to levy and collect IGST on supplies in the course of inter- State supplies & imports Compensation for loss of revenue to States for five years All transactions and processes only through electronic mode – Non- intrusive administration PAN Based Registration Registration only if turnover more than Rs. 20 lac (Rs. 10 lacs for special category States except J&K) Main Features of the GST Act (1/5)
- 16. Main Features of the GST Act (2/5) 16 Option of Voluntary Registration Composition threshold shall be Rs. 100 lakh Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers Deemed Registration in three working days Input Tax Credit available on taxes paid on all procurements (except few specified items)
- 17. Main Features of the GST Act (3/5) 17 Set of auto-populated Monthly returns and Annual Return Composition taxpayers to file Quarterly returns Automatic generation of returns GST Practitioners for assisting filing of returns GSTN and GST Suvidha Providers (GSPs) to provide technology based assistance
- 18. Main Features of the GST Act (4/5) 18 Tax can be deposited by internet banking, NEFT / RTGS, Debit / credit card and over the counter Concept of TDS for certain specified categories (to be brought in force wef 01/04/18) Concept of TCS for E-Commerce Companies (to be brought in force wef 01/04/18) Nation-wide introduction of E-way bill for all inter-state supplies with effect from 01.02.2018 and for all intra-state supplies with effect from 01.06.2018 Refund to be granted within 60 days Provisional release of 90% refund to exporters within 7 days
- 19. Main Features of the GST Act (5/5) 19 Interest payable if refund not sanctioned in time Refund to be directly credited to bank accounts Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime Special procedures for job work System of GST Compliance Rating Anti-Profiteering provision – National Anti-Profiteering Authority being set up Standing Committee on Anti-Profiteering to be set up State level Screening Committee to be set up
- 20. Benefits of GST (1/2) 1 2 3 4 5 Overall Reduction in Prices Reduction in Cascading of Taxes Common National Market Benefits to Small Taxpayers Self-Regulating Tax System 6 20 Non-Intrusive Electronic Tax Syste m Decrease in Inflation Ease of Doing Business Decrease in “Black” Transactions
- 21. Benefits of GST (2/2) 7 8 9 10 Simplified Tax Regime Reduction in Multiplicity of Taxes Consumption Based Tax Abolition of CST More informed consumer Poorer States to Gain Make in India 11 Exports to be Zero Rated 12 21 Protection of Domestic Ind. - IGST
- 22. Goods and Service Tax Network 22 Incorporated in March 2013 as Section 25 private limited company with paid up capital of Rs. 10 crore Equity Holders o Central Government - 24.5% o EC and all States together - 24.5% o Financial Institutions – 51% To function as a Common Pass-through portal for taxpayers- o submit registration application o file returns o make tax payments To develop back end modules for 28 States (MODEL –II) Infosys appointed as Managed Service Provider (MSP) Appointed multiple GST Suvidha Providers (GSPs)
- 23. Role of CBEC Role in Policy making: Drafting of GST Law, Rules & Procedures – CGST , UTGST & IGST Law CBEC is responsible for administration of the CGST and IGST law. Assessment, Audit, Anti-evasion & enforcement under CGST , UTGST & IGST Law Levy & collection of Central Excise duty on products outside GST – Petroleum Products & Tobacco Levy & collection of Customs duties Developing linkages of CBEC - GST System with GSTN Training of officials of both Centre & States Outreach programs for Trade and Industry Director General of Safeguards, CBEC has been mandated to conduct detailed enquiry on anti-profiteering cases
- 24. 24 www.cbec.gov.in www. cbec- gst.gov.in CBEC Help Desk Toll Free : 1800 1200 232 Email : cbecmitra.helpdesk@icegate.gov.in GSTN Help Desk Toll Free : 0124-4688999 Email : helpdesk@gst.gov.in