GST Council – Meeting on 16/03/2017
Draft SGST and UTGST Bills approved
The GST Council at its meeting on March 16, 2017 approved the final draft of the State Goods and Service Tax Bill (SGST) and Union Territory Goods and Service Tax Bill (UTGST).
In earlier meetings the GST Council had approved the final draft of the Central Goods and Service Tax Bill (CGST) and Integrated Goods and Service Tax Bill (IGST) and GST Compensation Bill.
This completes the approval of all five legislation. The CGST, IGST, UTGST and GST Compensation Bills have to be approved by the Parliament. It is expected that the four bills would be approved in this session of Parliament concluding on April 12, 2017.
It is also expected that the State legislatures would also expedite the approval of the SGST Act of the respective States.
Briefing the press Finance Minister Arun Jaitley stated that in the next meeting scheduled on March 31, 2017 the GST Council would take up for consideration the Rules relating to Composition of Tax, Valuation, Input Tax Credit and Transition.
Earlier the rules relating to Invoices, Returns, Refunds, Registration and Payments had been approved and any modifications in these Rules consequent to amendment to the legislation would also be discussed in the meeting on March 31, 2017.
The GST Council had also capped the Cess at 15% on certain Sin Goods and Ultra Luxury Goods like luxury car, aerated beverages, pan masala and tobacco. Therefore it appears that Cess of upto 15% may be levied in addition to the maximum combined slab rate of 28% so as to levy the same rate of tax as at present on these goods.
Finance Minister Arun Jaitley stated that the fitment of goods and services in the agreed slab rate of tax of 5%, 12%, 18% and 28%, which the officials are working on, would be taken up in the meeting of the GST Council in April, 2017.
Implementation of GST appears to be on course and is most likely to be implemented from July 1, 2017.
We are pleased to present the following articles by Sri.G.Viswanathan, Indirect Tax Consultant.
Works Contract under GST
In this article CA Viswanathan lucidly explains the relevant provisions in Model GST Law relating to works contract transactions and also opines that the value of free supply of materials by the principal could not be included to the
transaction value in a Works Contract for the purpose of GST levy.
Click to view Works Contract under GST
Input Tax Credit in GST and Credit Mechanism
In this article CA Viswanathan outlines in an easy-to-understand language, the basic principles of input tax and the credit mechanism as proposed in Model GST Law.
Click to view Input Tax Credit in
and Credit Mechanism
Date : March 16, 2017.
GST Council – Meeting on 04/03/2017
Draft CGST and IGST Bills approved
The GST Council at its meeting on March 4, 2017 approved the final draft of the Central Goods and Service Tax Bill (CGST) and Integrated Goods and Service Tax Bill (IGST).
In an earlier meeting the GST Council had approved the draft of the GST Compensation Bill. It is reported that the draft State Goods and Service Tax Bill (SGST) and a draft Union Territory Goods and Service Tax Bill (UTGST) would be considered in the next meeting of the GST Council scheduled on March 16, 2017.
Briefing the press after the meeting of the GST Council on
March 4, 2017, Shri. Arun Jaitley stated that the draft of the GST Compensation Bill, CGST Bill and IGST Bill would be tabled in the Parliament soon after final approval of all legislation by the GST Council so as to pass the Bills before the Parliament session concludes on April
12, 2017. Once SGST draft bill is approved by the GST Council, the State Legislatures would begin the process of approval of SGST Bills.
The next major activity is Fitment of Goods/Services in the various agreed slab rates, which would be taken up by the GST Council soon after the officials have completed the activity of Fitment of Goods/Services in the various agreed slab rates. This may happen in April 2017.
Allaying the apprehension in press reports of the combined CGST + SGST could be 40%, it was clarified that there is no change in the decision to have 4 slab rates (5%, 12%, 18% and 28%) and Cess on certain demerit goods and that the 40% rate is only an enabling provision, should there be a need to increase the rate of tax at later date.
Shri. Arun Jaitley also stated that the optimistic date of rollout of GST would be July 1, 2017.
Date : March 3, 2017.
CBEC launches GST APP
CBEC launches official Mobile App (CBEC GST MOBILE APP) for GST. The mobile application can be downloaded free of cost on Android platforms. iOS version would be available soon.
In order to familiarize taxpayers and to ensure a smooth transition to GST Goods and Services Tax, CBEC has published an official application that provides information on migration to GST, draft GST laws and rules, FAQs, Latest Updates etc. Users can also provide feedback and contact CBEC Mitra Helpdesk using the application.
Click to view the link to GST Mobile App
Click to view the Press Note on GST Mobile App.
Duty Drawback under GST Framework– Suggestions invited
Drawback division of CBEC has invited suggestions on All Industry Rates of Duty drawback for exports under the GST Framework.
Click to view communication dated 23/02/2017 inviting Suggestions on All Industry Rates (AIRs) of duty drawback under the GST framework
Date : February 27, 2017
GST Council – Meeting on 18/02/2017
GST Compensation Bill Approved
Briefing the press after the meeting of the GST Council on 18/02/2017, Shri. Arun Jaitley stated that the draft of the GST Compensation Bill was formally approved and would be tabled in the next session of the Parliament scheduled to be held from 9th
March, 2017 to 12th April, 2017.
The GST Council is also reported to have discussed and clarified certain issues on legal drafting of the draft CGST / SGST and IGST Bills.
The final legally vetted draft will be placed before the GST Council in the next meeting scheduled on 4th and 5th March, 2017. Shri. Arun Jaitley stated that one more meeting would be required to clear specific
legal issues in the draft legislation.
The officials will then work on fitment of specific goods in the agreed slab rates. Shri. Arun Jaitley stated that the slab rates and then would be discussed by the GST Council.
It appears that the progress is on course for the scheduled GST rollout target of July 1, 2017. Besides the rate of tax schedule for Goods and Services, in so far as the broad contours of the legislation is concerned, what remains is vetting of proper legal drafting and procedural issues like Appellate Jurisdiction, mechanism to implement anti profiteering provisions, etc.
Hopefully the CGST and IGST Bills would also be approved by the Parliament in the ensuing session and the SGST legislation would be approved by the respective State legislature soon.
So it is time for trade and industry to
Click to download
GST Migration Process.
Please note that those who are registered under State VAT Act and are also registered under Central Excise or Service Tax, the migration would be using the provisional ID provided by State VAT Authorities.
The provisional ID provided in https://www.aces.gov.in/
The last date is 31st January,2017
Migration of Excise /Service Tax Assessees
GSTN has announced the revised Enrolment Schedule for existing Service Tax and Central Excise Assessees who are not registered under the State VAT Act. The revised schedule is
GSTN - Migration of Registration GST System Portal
Here is the link to the portal for migration of registration of existing assessees of Central Excise, Service Tax and VAT.
The process is
• Your provisional ID will come from your tax officer
• Update profile information and upload documents
Enrolment is taken up in a staggered manner. At present migration of dealers registered under the State VAT Act is facilitated.
GST registration - Enrolment Plan of States
The schedule of the enrolment activation drive for states as in GSTN website is given below.
Gujrat, Maharashtra, Goa,
Daman and Diu, Dadra Nagar Haveli,
Odisha, Jharkhand, Bihar,
West Bengal, Madhya Pradesh, Assam, Tripur,
Meghalaya, Nagaland, Arunachal Pradesh,
Uttar Pradesh, Jammu and
Kashmir, Delhi, Chandigarh, Haryana, Punjab,
Uttarakhand, Himachal Pradesh, Rajasthan
Kerala, Tamil Nadu,
Karnataka, Telangana, Andhra Pradesh
Service Tax Registrants
Delta All Registrants (All
Click to download Enrolment Plan of States
State Circulars on migration of assessees to
Several States have initiated the facilitation for
migration of existing assessees registered under the VAT
Act of the respective States.
Click to view the State Circulars
It is requested in the portal to complete the enrolment during the specified dates. However, the window will be open till 31/01/2017 for those who miss the chance.
This portal has detailed FAQs and User Manual on Using the GST Common Portal.
Earlier GSTN had released FAQs on the procedure for Enrolment of the Existing Taxpayer on the GST System Portal.
Migration of existing
November 8, 2016