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GST Giri
GST Giri
GST Giri
Definition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all
forms of supply of goods and/or services such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of business. Schedule I
specified the supply.
Analysis: Supply is the term replaced for the term sale; no scope has been left for
any confusion and the definition includes every term which shall be coined as
sale. Even the supply which is made or agreed to be made without a
consideration will also amount to sale.
Any transfer of title to goods is a supply of goods, transfer of right to use goods
[section 4(8) of APVAT Act, 2005], Hire purchase transactions, transfer of business
assets are also brought under the ambit of term ‘supply’ as per Schedule II.
1.Supply includes
(a)all forms of supply of goods and/or services such as sale, transfer, barter,
exchange, license, rental, lease or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of business,
consideration
Sale of land / Sale of building after occupation or completion will not attract
GST. Thus, sale of building before completion or before occupancy will attract
GST
Following matters will be treated as deemed supply of goods and services and will
attract GST :
1.In case of Transfer of title in goods, OR, Right in goods, OR of undivided share
in goods without the transfer of title, OR, transfer under an agreement which
stipulates that property will pass at a future date upon payment of full
consideration
2.In case of Land & Building, – Any lease, tenancy, easement, license to occupy
land or building ( both for commercial or residential purpose, fully or partly)
Taxability – The tax liability on a mixed supply comprising two or more supplies
shall be treated as supply of that particular supply which attracts the highest rate
of tax .
Example – Where goods are packed and transported with insurance, the supply of
goods, packing materials, transport and insurance is a composite supply and
supply of goods is the principal supply.
Principal Supply Means: The supply of goods or services which constitutes the
predominant element of a composite supply and to which any other supply
forming part of that composite supply is ancillary and does not constitute, for the
recipient an aim in itself, but a means for better enjoyment of the principal
supply.
9.Lottery tickets are goods and GST will be payable. GST will also be payable on
services relating to betting and gambling
10.Some services provided by government are taxable and mostly will be subject
to reverse charge.
'Goods' is defined as per Section 2 (7) of the 'Act' as. “Every kind of movable
property other than actionable claims and money; and includes stock and shares,
growing crops, grass, and things attached to or forming part of the land which are
agreed to be severed before sale or under the contract of sale.”
“money” means the Indian legal tender or any foreign currency, cheque,
promissory note, bill of exchange, letter of credit, draft, pay order, traveller
cheque, money order, postal or electronic remittance or any other instrument
recognised by the Reserve Bank of India when used as a consideration to settle an
obligation or exchange with Indian legal tender of another denomination but shall
not include any currency that is held for its numismatic value.
Meaning of term “Money” as defined in Section 2(75) “money means Indian legal
tender or any foreign currency, cheque, promissory note, bill of exchange, letter
of credit, draft, pay order, traveller cheque, money order, postal or electronic
remittance or any other instrument recognized by the Reserve Bank of India when
used as consideration to settle an obligation or exchange with Indian legal tender
of another denomination but shall not include any currency that is held for its
numismatic value”.
Section 2(102) of CGST Act - “services” means anything other than goods, money
and securities but includes activities relating to the use of money or its conversion
by cash or by any other mode, from one form, currency or denomination, to
another form, currency or denomination for which a separate consideration is
charged.
As per section 3 of above act, actionable claims means a claims to any debt, other
than a debt secured by mortgage of immovable property or by hypothecation or
pledge of movable property, or by any beneficial interest in movable property,
either actual or constructive, of claimant, which the civil courts recognise as
affording ground for relief, whether such debt or beneficial interest be existent,
accruing, conditional or contingent.
The structure of GST stands on the foundation of the registration system, for it is
a registered person who is liable to pay tax and who is eligible to avail the benefits
of the input tax credit mechanism. A registered person can also collect GST from
his recipients. An unregistered person is not taxed and is also kept outside
the input tax credit mechanism.
The GST law gives a limited option to certain categories of persons to avoid
registration and thus avoid the tax liability lawfully. However, if one falls within
the reach of an extensive list of statutorily prescribed criteria requiring
compulsory registration, the supplier must get registered.
a) State or UTs:
Every supplier of the goods or services or both needs to register in a State or a
Union Territory, if his turnover exceeds Rs.20 lakhs.
b) Special Category States:
In case of special category states namely AP, J&K, Assam, Nagaland, Mizoram,
Sikkim, Uttarakhand, etc., the person shall be liable to be registered if his
turnover exceeds Rs.10 lakhs.
c) Aggregate Turnover:
Means aggregate value of all taxable supplies, exempt supplies, Exports, and
inter-State supplies of persons having the same PAN but excludes taxes (Reverse
charge of tax).
d) Registration:
Any person who is registered before the appointed day i.e. 1st July 2017 is liable
to be registered under the CGST Act.
e) Registration of Transferee or Successor:
If a registered business by a taxable person is transferred to another person, then
such a person, be it successor or a transferee, shall be liable to be registered
under the Act.
b) Reference Number:
On successful verification of the PAN, mobile number and e-mail, a temporary
reference number shall be generated and communicated to the applicant.
c) Application:
Using the reference number, the applicant shall electronically submit an
application in Part B of FORM GST REG-01, duly signed or verified through
electronic verification code (EVC), along with documents specified in the form.
d) Specified Documents:
The following specified documents are required to be submitted along with the
application:
i) Company documents
i) LLP Documents
i) Partnership documents
D. Acknowledgement:
A limited territory of business. The dealer is barred from carrying out inter-
state transactions
No Input Tax Credit available to composition dealers
The taxpayer will not be eligible to supply exempt goods or goods through
an e-commerce portal.
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There are four slabs fixed for GST Rates - 5%, 12%, 18% and 28%.
Items exempted under GST:
Milk, eggs, curd, buttermilk, Fresh vegetables and fruits, Un-branded wheat and
rice, un-branded flour, Puja Items
Items under 5%
Frozen Vegetables and fruits, branded wheat and rice, branded flour, hand-made
safety matches, cotton, cotton fabrics, Footwear below Rs.500
Biddi wrapper leaves, biscuits, footwear exceeding Rs. 500, man-made fibre, hair
oil, soap, and toothpaste
Composition The dealer can use The dealer can use the Composition
the benefit upto Rs.1 benefit upto Rs.1 scheme is not
Crore/1.5 crore Crore(…see updates) applicable in
(…see updates) under composition interstate supply.
under composition scheme.
scheme.