Levy & Collection & Exemption Levy & Collection & Exemption from tax from tax
LEVY & COLLECTION OF TAX (SEC:9) OF CGST ACT Subject to the Provision of sub section (2),there shall be levied a tax called Central goods and Services tax on all Intra-State supplies of goods or Services or both, except on the supply of alcoholic liquor for human consumption ,on v alue determined under Section 15 and at such rates not exceeding 20% as may be notified. 9(1) Components of Section 9(1): Components of Section 9(1): 1. Definition of Goods & Services 1. Definition of Goods & Services 2. Definition of Supply 2. Definition of Supply 3. Definition of Intra-State 3. Definition of Intra-State 4. Valuation as per Section 15 of this Act 4. Valuation as per Section 15 of this Act Petroleum products to be brought within GST framework from the notified date. 9(2) Central government will specify the categories of Services & goods on which tax shall be paid under RCM. 9(3) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on RCM basis , and all the provision of this Act shall apply to such person as if he is the person liable for paying the tax. 9(4)
SECTION 9… The government will specify categories of Services on which tax shall be paid by Electronic The government will specify categories of Services on which tax shall be paid by Electronic commerce operator if such services are supplied through it. 9(5) commerce operator if such services are supplied through it. 9(5) If such ecommerce operator does not have physical presence in taxable territory then any If such ecommerce operator does not have physical presence in taxable territory then any person representing such person shall pay the tax. (proviso to Sec9(5) person representing such person shall pay the tax. (proviso to Sec9(5) I f such operator does not have Representative in taxable territory then he will appoint a I f such operator does not have Representative in taxable territory then he will appoint a person, for the purpose of paying tax. (Second Proviso to 9(5) person, for the purpose of paying tax. (Second Proviso to 9(5)
MEANING OF “GOODS” & “SERVICES” IN GST MEANING OF “GOODS” & “SERVICES” IN GST Meaning of ‘Goods’ in GST: Meaning of ‘Goods’ in GST: “goods’’ means every kind of movable property “goods’’ means every kind of movable property other than Money and security other than Money and security but includes actionable claim, growing crops, grass and things attached to or but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the forming part of the land which are agreed to be severed before supply or under the contract of supply; contract of supply; Explanation– For the purpose of this clause, the term ‘moveable property’ shall Explanation– For the purpose of this clause, the term ‘moveable property’ shall not include any intangible property.” not include any intangible property.” Meaning of ‘Services’ in GST: “services’’ means anything other than goods, money & Securities but it includes activities relating to the use of money or its conversion, for which separate consideration is charged.
SUPPLY (SECTION:7 OF CGST ACT) Supply Includes: Supply Includes: Sale Sale Barter Barter Transfer Transfer Exchange Exchange License License Rental Rental Lease Lease Disposal for a consideration by a person in the course or furtherance of Business. Disposal for a consideration by a person in the course or furtherance of Business. Importation of Services: for a consideration whether or not in a course or furtherance of Business. ( E.g.: If you receive any services of any architect who is situated in Dubai , for designing of your office, then GST will be levied. And if you receive same service to design your home, then also it will fall in GST preview .
COMPOSITE SUPPLY & MIXED SUPPLY Composite Supply : Composite Supply : Comprising of two or more Supplies, one of which is a principal Supply, shall Comprising of two or more Supplies, one of which is a principal Supply, shall be treated as a supply of such Principal Supply. be treated as a supply of such Principal Supply. Illustration: Illustration: When goods are packed and transported with insurance, the supply of the goods, packing When goods are packed and transported with insurance, the supply of the goods, packing material, transport & Insurance is a composite Supply and Supply of a goods is the Principal material, transport & Insurance is a composite Supply and Supply of a goods is the Principal Supply. Supply. Therefore all other Supplies will be taxed at the rate of Principal Supply. Therefore all other Supplies will be taxed at the rate of Principal Supply. Mixed Supply : Mixed Supply : Comprising two or more individual supplies of goods or services, or any Comprising two or more individual supplies of goods or services, or any combination thereof . combination thereof . Should be for a single Price Should be for a single Price Does not constitute Composite Supply. Does not constitute Composite Supply. Illustration: Illustration: A supply of Package consisting of Sweets,Chocolates,Dry fruits etc.. A supply of Package consisting of Sweets,Chocolates,Dry fruits etc.. Will be taxed which attracts highest rate of tax Will be taxed which attracts highest rate of tax
SCHEDULE I Matters to be treated as Supply even if made without consideration: Permanent transfer/disposal of business assets where Input tax Credit has been availed Permanent transfer/disposal of business assets where Input tax Credit has been availed on such Asset. on such Asset. Transaction between Related Persons , When made in the course or furtherance of Transaction between Related Persons , When made in the course or furtherance of Business Business Supply of Goods: Supply of Goods: a) By a Principal to agent ,where agent undertakes to supply such goods on behalf of the a) By a Principal to agent ,where agent undertakes to supply such goods on behalf of the principal or principal or b) By an agent to Principal where agent undertakes to receive such goods on behalf of the b) By an agent to Principal where agent undertakes to receive such goods on behalf of the Principal. Principal. Importation of Service by a taxable person from a related person or from any of his other establishment outside India , in the course or furtherance of Business .
RELATED PERSON a) Person shall be deemed to be related person if- a) Person shall be deemed to be related person if- i. i. Such persons are officers or directors of one other’s business; Such persons are officers or directors of one other’s business; ii. ii. Such persons are legally recognized partners in business Such persons are legally recognized partners in business iii. iii. Such persons are employer & employee Such persons are employer & employee iv. iv. Any person directly or indirectly owns, controls or holds 25% or more of the Any person directly or indirectly owns, controls or holds 25% or more of the outstanding voting stock or shares of both of them outstanding voting stock or shares of both of them v. v. One of them directly or indirectly controls the other; One of them directly or indirectly controls the other; vi. vi. Both of them are directly or indirectly controlled by a third person Both of them are directly or indirectly controlled by a third person vii. Together they directly or indirectly control a third person; or they are members of a vii. Together they directly or indirectly control a third person; or they are members of a same family same family b) The term person also includes legal persons b) The term person also includes legal persons c) Person who are associated in the business of one another in that one is the sole agent or c) Person who are associated in the business of one another in that one is the sole agent or sole distributor, howsoever described, of the other, shall be deemed to be related. sole distributor, howsoever described, of the other, shall be deemed to be related.
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