CA Bimal Jain
CA Bimal Jain

Government releases Revised Model GST Law along with Draft GST Compensation Bill

With step-by-step progress towards Goods and Services Tax (“GST”), the Country is all set to witness the biggest indirect tax reform of unmatched importance in independent India. GST is a biggest game changing indirect tax reform for Indian economy, aimed at undoing Inter-State barriers to trade in goods and services by subsuming around 17 indirect taxes, viz. Excise Duty, Service Tax, VAT, CST, Luxury tax, Entry Tax, etc.

In order to engage with the stakeholders and invite comments from the public at large, the Central Government earlier put the Model GST Law on public domain on June 14, 2016. Industry Inc made threadbare analyses of the provisions contained therein and various suggestions were submitted to the Government through various forums.

Taking into consideration the suggestions received from Trade and Industry, the Central Government has now released Revised Model GST Law along with Draft GST Compensation Bill, which has now been put on public domain.

The Draft Lawis a model which the Central Government and each of the State Governments would use to draft their respective Central and State GST Acts. Further, a Draft of the Integrated GST Act, 2016, which will govern levy of GST on inter-State supplies by the Central Government,is also issued.

The Revised Model GST Law provides an insight on the governing provisions regarding levy and collection of GST after incorporating various suggestions provided by the Stakeholders.

“These Laws will be considered by GST Council in its meeting scheduled for 2nd and 3rd Dec and finalised…..”

Tweet by Dr. Hasmukh Adhia, Revenue Secretary

The Revised Model CGST/SGST Law also states that the Act shall be referred as the Central/ State Goods and Services Tax Act, 2016. The Revised Model CGST/SGST Law consists of:

Revised Model CGST/SGST Law Earlier Model CGST/SGST Law
197 Sections 162 Sections
27 Chapters 25 Chapters
5 Schedules:

  • Schedule I: Matters to be treated as supply even if made without consideration
  • Schedule II: Matters to be treated as supply of goods or services
  • Schedule III: Activities or transactions which shall be treated neither as a supply of goods nor a supply of services
  • Schedule IV: Activities or transactions undertaken by the Central Government, a State Government or any Local Authority which shall be treated neither as a supply of goods nor a supply of services
  • Schedule V: Persons liable to be registered
4 Schedules:

  • Schedule I: Matters to be treated as supply without consideration
  • Schedule II: Matters to be treated as supply of goods or services
  • Schedule III: Liability to be registered
  • Schedule IV: Activities or transactions in respect of whichthe Central Government, a State Government or any Local Authority shall not be regarded as a taxable person

 

No separate GST Valuation Rules provided GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016

To access Revised Model CGST/SGST Law, please access the following link:

Revised Model Draft GST Law Released by CBEC

The Revised Model IGST Law also states that the Act shall be referred as the Integrated Goods and Services Tax Act, 2016. The Revised Model IGST Law consists of:

Revised Mode lI GST Law Earlier Mode lI GST Law
24 Sections 33 Sections
11 Chapters 11 Chapters

To access Revised Model IGST Law, please access the following link:

Draft Integrated Goods And Services Tax (IGST) Act, 2016

Further, the Draft Goods and Services Tax (Compensation to the States for loss of Revenue) Bill, 2016 has also been placed, to provide compensation to the States for loss of revenue arising on account of implementation of the GST for a period of five years as per Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.

To access Draft GST Compensation Bill, please access the following link:

GST (Compensation to States For Loss of Revenue) Bill, 2016

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.

(Author can be reached at Email: bimaljain@hotmail.com)

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