As we all are aware that we are passing through the regime where entire indirect system is switching over to the GST which is governed by four Acts i.e. IGST, CGST, SGST & UGST. All the four acts will work in their respective spheres as per their applicability. It is very important to discuss that under the GST taxable event shall be the supply of goods or services or both made for consideration in the course of furtherance of business whereas the taxable event under the existing indirect tax laws are on manufacture, sale or on service. It is very important to understand the concept of supply in which very important terms like sale transfer, barter system, exchange license, lease and disposal plays vital role. A minute examination of these words raises one very vital issue i.e. under the GST even transfers e.g. interstate transfer, branch transfer and consignment transfer are also covered in the definition of supply hence subject to tax except within the state transfer e.g. branch transfer and stock transfer.
GST will be leviable if the transaction will qualify below mentioned six points:
1. The activity involves supply of goods or services or both;
2. The supply is for a consideration unless otherwise specifically provided for;
3. The supply is made in the course or furtherance of business;
4. The supply is made in the taxable territory;
5. The supply is a taxable supply and;
6. The supply is made by a taxable person.
When GST is leviable.
GST is leviable on every stage of supply and when the same is sold within the state then CGST and SGST both will apply for example if the rate of tax on the item is 18% then seller is to charge on invoice 9% as CGST and 9% as SGST simultaneously.
If the goods are sold in the course of interstate then seller is to charge IGST on the invoice and the rate will remain same but only IGST is to be charged.
Schedule of Services
Schedule of Goods
Below are the formats required to be filled for the compliance of GST beside form-R1, R2, R3, R4, R5 on different occasions:
Registration format – GST
Composition Format – GST
Input Tax Credit Format – GST
Payment rules format – GST
Refund format – GST
Under GST all the registration certificates will be issued online and under the GST Act the dealer is under an obligation to upload every sale and purchase bill the concept of rating will play vital role the concern which will make compliance as required under the act will be rated accordingly.
Under the GST, Government has issued draft Electronic Way (e-way) Bill Rules – some important provisions are as under:
1. E way bill will have to issued for all supplies of goods exceeding value of 50000
2. E-way bill will have to be issued online on GST website
3. Validity of e-way bill from the time and date of its issuance will be as under :
– for 100 kms – 1 day
– for 100 to 300 kms – 3 days
– for 300 to 500 kms – 5 days
– for 500 to 1000 kms – 10 days
– for more than 1000 kms – 15 days
4. An e-way bill can be cancelled only within 24 hrs of its issuance
5. Where a vehicle has been detained for more than 30 mins the transporter can upload this information on GSTN.
INSPECTION AND SEARCH
1. For inspection prior permission of Joint Commissioner is required and the permission should be on some reasoning.
2. If inspection is to be converted into search then valid search warrant is required.
3. If want to search house, then lady officer must accompany
4. Officer must show identity.
5. Signature of the person on whose premises search will be conducted, is mandatory on search warrant.
6. For seized record and stocks or for accountability, proper Panchnama is required to be prepared.
7. Beside the signatures of the aggrieved person the signature of two witnesses are required.
8. If any document were impounded, then the same must be returned within a period of 60 days.
1. Every dealer who is entitled for refund, will get refund 90% of the total amount within 7 days.
2. In other cases, if dealer wants to get 100% in totality then the department is under an obligation to grant the refund within 60 days.
POWER OF THE COMMISSIONER TO MAKE INSTALLMENTS IF DEALER PROVES HIS FINANCIAL HARDSHIP THAT HE IS NOT IN A POSITION TO MAKE THE PAYMENT OF TAXES DUE IN ONE STROKE
This act has conferred the powers on the Commissioner to make the installments of the tax due where the dealer proves his financial hardship.
Beside scrutiny self-assessment, summary assessment, provisional assessment, regular assessment, a new concept of protective assessment is introduced as prevalent under the IT Act.
Normal Time limit for framing the assessment is three years but where the case is of fraud or any willful statement of suppression or evasion of tax then the period is five years.
As per the scheme of the act when purchaser returns the goods then supplier of goods is under an obligation to issue the credit note and both the transactions are required to be shown in the returns so that detail of credit note shall be matched with the corresponding reduction in claim for input tax credit by the purchaser in his valid return for the same tax period or in any subsequent tax period and simultaneously the reduction in output tax liability by the supplier.
Conclusion to the post:
It is undisputed that the GST Act is the Act which is comprised of number of other acts which are working simultaneously for the collection of the taxes, duties etc. like (a) Central Excise Duty, (b) Service Tax, (c) VAT, (d) Central Sales Tax (CST), (e) Purchase Tax, (f) Entry Tax, (g) Luxury Tax, (h) Entertainment Tax, (i) Lottery Tax, (j) Cess and Surcharge, (k) Additional Duty of Excise, (l) Additional Duty of Custom (CVD), (m) Special Additional Duty of Custom (SAD) and the effort is to reduce the problems of the dealers as the Government has decided to take-off the check posts and only mobile check posts will be enforce everything and will be online. Though it is a new concept comprising of both goods and services so it requires the knowledge for complying the law in an appropriate manner and the above are the few provisions, rates, formats for smooth compliance of the GST Act.
(Author – J S BEDI Advocate, Email: [email protected], Mobile: 98140-66336)