ICAI - Certified Course - Consititutional Amendment Important Defination - CA Rajiv Luthia PDF

22nd April, 2017
“CERTIFIED COURSE ON GST”
Organized by
IDT COMMITTEE OF ICAI
PRESENTED BY
RAJIV LUTHIA
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST RETURN
2nd June, 2017 CA RAJIV LUTHIA 1
COVERAGE
1
22nd April, 2017
GST EVOLUTION
• The Goods and Services Tax (GST) is a comprehensive
tax levy on manufacture, sale and consumption of goods
and services at a national level.
• The 101st Constitution Amendment Act,2016 was passed by the

Parliament paving the way for the Government to reconstruct the
presently distributed indirect tax law regime into a unified tax
structure through a Goods & Services Tax Act
• GST is governed by 3 Central laws and 29 State laws.
GST EVOLUTION
• Following Central laws received assent from the
president on 12th April 2017.
– Central Goods and Services Tax Act, 2017 (CGST)
– Integrated Goods and Services Act, 2017 (IGST)
– Union Territory Goods and Services Act, 2017 (UTGST)
– THE GST (Compensation to state) Act, 2017
• The state governments have enacted SGST in their

respective state.
2
22nd April, 2017
IMPORTANT CHANGES MADE IN CONSTITUTION
• Article 246A was inserted on 3rd August, 2016 which

provide that
– Notwithstanding anything contained in articles 246 and 254,

Parliament, and, subject to clause (2), the Legislature of every
State, have power to make laws with respect to goods and
services tax imposed by the Union or by such State.
– Parliament has exclusive power to make laws with respect to

goods and services tax where the supply of goods, or of
services, or both takes place in the course of inter-State trade
or commerce

• Article 269A was inserted w.e.f 3rd August, 2016 which
provide that
– Goods and services tax on supplies in the course of inter-State
trade or commerce shall be levied and collected by the
Government of India and such tax shall be apportioned
between the Union and the States in the manner as may be
provided by Parliament by law on the recommendations of
the Goods and Services Tax Council.
– Explanation.—For the purposes of this clause, supply of goods,

or of services, or both in the course of import into the territory
of India shall be deemed to be supply of goods, or of services,
or both in the course of inter-State trade or commerce.
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22nd April, 2017

– The amount apportioned to a State under clause (1) shall not form
part of the Consolidated Fund of India.
– Parliament may, by law, formulate the principles for determining the

place of supply, and when a supply of goods, or of services, or both
takes place in the course of inter-State trade or commerce.’

• Article 279A was inserted which provides that
– GST council to be constituted by president within sixty days from this act
coming into force. The GST council will constitute the following members:
• Union Finance Minister as chairman of the council
• Union Minister of State in charge of Revenue or Finance One
nominated member from each state who is in charge of finance or
taxation.
• Article 248 – Residuary power of Legislation is now subject to

Article 246A
– Subject to article 246A, Parliament has exclusive power to make any law
with respect to any matter not enumerated in the concurrent list or State
List.
– Such power shall include the power of making any law imposing a tax not
mentioned in either of those lists.
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22nd April, 2017

• Article 249 has been amended, thereby Parliament has powers to make
necessary laws with respect to GST subject to resolution passed by Rajya Sabha
with 2/3rd majority.
• Article 250 has been amended so that parliament has powers to make laws
related to GST during emergency period.
• Article 268 has been amended, hence excise duty on medicinal and toilet
preparation is omitted from the state list and subsumed in GST.
• Article 268A has been repealed hence service tax is subsumed in GST.
• Article 269 would empower the parliament to make GST related laws for inter-
state trade / commerce.

Changes in 7th Schedule
• Union List:
– Earlier, The entry 84 covers the duties on tobacco, alcoholic liquors, opium,
Indian hemp, narcotic drugs and narcotics, medical and toilet preparations.
– Post amendment, it covers Petroleum crude, high speed diesel, motor spirit
(petrol), natural gas, and aviation turbine fuel, tobacco and tobacco
products.
– Thus, these products are out of ambit of GST and subject to Union
jurisdiction.
– Entry 92 (newspapers and on advertisements published therein) has been

deleted thus, they are now covered under GST.
– Entry 92-C (Service Tax) has been now deleted from union list.
5
22nd April, 2017

Changes in 7th Schedule
• State List
– Under State list, entry 52 (entry tax for sale in state) has been deleted.
– In Entry 54, Taxes on the sale or purchase of goods other than newspapers,
subject to the provisions of Entry 92-A of List I, has been now replaced by
Taxes on the sale of petroleum crude, high speed diesel, motor spirit
(commonly known as petrol), natural gas, aviation turbine fuel and
alcoholic liquor for human consumption, but not including sale in the
course of inter-State trade or commerce or sale in the course of
international trade or commerce of such goods.”
– Entry 55 (advertisement taxes) have been deleted.
– Entry 62 (Taxes on luxuries, including taxes on entertainments,

amusements, betting and gambling) has been replaced. These taxes only to
be levied by local governments (panchayats, municipality, regional council
or district council.
GST - FEATURES
DESTINATION
BASED TAX ON
CONSUMPTION
BURDEN TO BE PROPOSED TO BE
BORNE BY FINAL LEVIED AT ALL STAGE
CONSUMER RIGHT FROM
MANUFACTURE UP TO
Features FINAL CONSUMPTION
ONLY VALUE
ADDITION WILL BE SEAMLESS CREDIT
TAXED
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22nd April, 2017
PROMINENT TAXES SUBSUMED IN GST

CENTRAL TAXES STATE TAXES
• Central Excise Duty • State VAT/Sales Tax

• Additional duties of • Central Sales Tax
Excise • Purchase Tax
• Addl. Custom Duty (CVD • Entertainment Tax
& SAD) • Luxury Tax
• Service Tax • Taxes on lottery, betting
• Surcharges & cess & gambling
• Entry Taxes
• Surcharges & Cess
COMMODITIES OUT OF GST PURVIEW

• ALCOHOL FOR HUMAN CONSUMPTION
• PETROLEUM PRODUCTS
– PETROLEUM CRUDE
– PETROL
– HIGH SPEED DIESEL
– NATURAL GAS
– AVIATION TURBINE
• ELECTRICITY
7
22nd April, 2017
PRESENT INDIRECT TAX STRUCTURE

PRESENT TAX
STRUCTURE
Sales Entry Tax/

Excise Service Custom
Tax/VAT/ Entertainment
Duty Tax Duty
CST Tax
Residuary Entry No. 54

Entry No Entry No. Entry No.52
Entry No. of List II(VAT)
84, List I, 83, List I, & 62 List II,
97, List I, and 92A of
Sch. VII Sch. VII Sch VII
Sch. VII List I (CST)
Taxable Taxable Event

Taxable Taxable Taxable
Event is Entertainment
Event is Event is as Event is
Import & & Entry of
Manufacture per POT Sale
Export Goods
2nd June, 2017 15
CA RAJIV LUTHIA
GST STRUCTURE
Excise and Local VAT &
Intra State Service Tax Will Other taxes will
Taxable Supply be known as be Known as
CGST SGST
CST,ST, Excise etc

Inter State
will be Known as IGST will be sum
Taxable Supply
Integrated GST of CGST & SGST
(IGST)
IGST will be
Import from Charged, in
Custom Duty
Outside India Place of CVD
and SAD
8
22nd April, 2017
GST CONCEPT
GST TO BE CHARGED ON EVERY
SUPPLY OF GOODS &/OR SERVICE
WITHIN STATE OUTSIDE STATE
CGST SGST IGST
• Rate recommended by GST council are 0%, 5%, 12%, 18% &
28%.
• Maximum rate is 40%
COMPARISION
Goods Purchase from Local Manufacturer by Person not eligible for CENVAT
PARTICULARS GST ERA (Maharashtra) PRE GST ERA (Maharashtra)

Purchase price of Industrial 10,000/- Rs. 10,000/-
Inputs
Excise Duty @ 14% : NIL Rs. 1,400/-
VAT @ 6% NIL Rs. 684/-
GST @ 18% 1,800/- NIL
Total Landing Cost 11,800/- Rs 12,084/-
Less : Input Credit available 1,800/- Rs. 684/-
Net Landing Cost 10,000/- Rs. 11,400/-
Effective Cost of goods likely to be reduced in “GST Era”

for assesses not eligible for Excise CENVAT in “pre GST
Era”
9
22nd April, 2017
IMPORTANT DEFINITION
Definition of Goods & Service

Goods – 2(52) Services – 2(102)
means means
Every Kind of Anything other

Movable property than goods
Excludes
Includes Includes
Money & Securities
i) Actionable claim Activities relating to:

i) Use of money or
ii) Growing crops, grass & things
ii) Its Conversation by cash /by any other
attached to/forming part of land
mode , from one form, currency or
which are agreed to be served
denomination to another form for
before supply or under a contract of which separate consideration is
2nd supply
June, 2017 CA RAJIV LUTHIA charged 20
10
22nd April, 2017
Security definition
• Securities – Section 2(101)
• Shall have meaning assigned to it in section 2(h) of Security contract Regulation
Act, 1956
• “Securities” include—
(i) shares, scrips, stocks, bonds, debentures, debenture stock or other
marketable securities of a like nature in or of any incorporated company or other
body corporate;
(ia) derivative;
(ib) units or any other instrument issued by any collective investment
scheme to the investors in such schemes;]
(ic)security receipt as defined in clause (zg) of section 2 of the
Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002;] (id) units or any other such instrument
issued to the investors under any mutual fund scheme;]
(ii) Government securities;
(iia) such other instruments as may be declared by the Central Government to be
securities; and
(iii) rights or interest in securities;
Definition of Business – 2(17)

Any trade /commerce, manufacture, Activity incidental/ancillary to it
profession, vocation, adventure,
B wager or similar activity, whether or Activity of same nature irrespective of
U not for a pecuniary benefit volume/frequency/continuity/regularity
S
I Supply of goods including In connection with
N capital goods or service commencement/closure of business
E
Provision of facilities by club To its member for consideration
S
association/society/such body
S
Admission for consideration To any premises
i
n
c Accepted in course/furtherance of
Service as holder of office
l trade ,profession
u
Service by race club by way Totalisator or a license to book maker
d
of in such club
e
s
Any activity by government/local authority as public authorities
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22nd April, 2017
Consideration – 2(31)
Consideration includes
Payment in money or Monetary value of any

otherwise for the act or forbearance for the
supply supply
By recipient or any
other person
Deposit to be considered
as payment
Excluding subsidy given by

ONLY
central/state government
When the supplier applies

such deposit as
consideration
2nd June, 2017 for supply CA RAJIV LUTHIA 23
RELEVANT DEFINITION
• SUPPLIER – SECTION 2(105)
• Relation to any goods/service shall mean the person supplying the said
goods/service and shall include an agent acting as such on behalf of such
supplier in relation to the goods/service supplied.
• RECIPIENT – SECTION 2(93)

– “Recipient” of supply of goods or services or both, means-
– (a) where a consideration is payable for the supply of goods or services or

both, the person who is liable to pay that consideration;
– (b) where no consideration is payable for the supply of goods, the person to
whom the goods are delivered or made available, or to whom possession or
use of the goods is given or made available; and
– (c) where no consideration is payable for the supply of a service, the person
to whom the service is rendered, and any reference to a person to whom a
supply is made shall be construed as a reference to the recipient of the
supply and shall include an agent acting as such on behalf of the recipient in
relation to the goods or services or both supplied;
12
22nd April, 2017
MEANING & SCOPE OF SUPPLY

Supply of goods/service (SUCH AS…PTO)
for consideration in course or
furtherance of business (Sec -7(1)(a)
Includes Importation of services for

consideration whether or not in course
or furtherance of business. Sec - 7(1)(b)
Activities without consideration

Supply specified in Schedule I (Sec 7(1)(c)
Activities referred in Schedule II to be

treated as supply of goods or services
[Section 7(1)(d)]
Excludes Transaction/activities specified in

Schedule III
Supply with Consideration-SUCH AS

Any sale of goods or services which broadly result in the transfer of
title in case of goods, and transfer of right to use in case of services.
Any transfers between branches form a part of supply and are taxable.
However, GST paid on branch transfers are fully available as Input Tax
Credit.
When the consideration is paid through goods/service ( i.e. in kind)
instead of money. For example: a seller has supplied goods “X” and
the buyer, supplies goods “Y” to the extent of payment. Or when one
product/service is exchanged with another product/service.
Any grant of license to use forms part of supply.

For example: online subscriptions, Software licenses
Renting/leasing of property fully or partially is a supply under

GST
Disposal of business assets forms part of supply

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22nd April, 2017
In course or furtherance of Business
Any Transaction involving supply

of goods or service without
consideration is not a supply
unless it is covered in Schedule I
Example
• Mr. A buys a car for his personal use and
after a year sells it to a car dealer.
• Sale of car by Mr. A to car dealer is not a
supply since supply is not made in course
or furtherance of business
MEANING & SCOPE OF SUPPLY :

• Importation of Service, for a consideration whether or
not in course or furtherance of business - DEEMED
SUPPLY :
14
22nd April, 2017
Importation of Service - Example

This image cannot currently be display ed.
Mr. Dhoni, an individual

Imports architect service from
Mr. Maxwell of Australia to
build his Villa at RANCHI
Mr. Maxwell - Architect -

Mr. Dhoni - India
Australia
• The above transaction of Importing architect Service by Mr. Dhoni will

be deemed as Supply.
• However, Entry 10 of notification 9/2017-IGST (rate) provide

exemption to above transaction
DEEMED SUPPLY
• SUPPLY MADE WITHOUT CONSIDERATION- SCHEDULE I
Transactions Examples
Permanent Transfer/disposal of business asset • Old Laptops donated to
where input credit availed on such asset trust by business entity
• Business asset or stock in
trade withdrawn by
partner or proprietor
Supply of goods or service between related • Driving School company

person/distinct person, when made in course or giving used car to
furtherance of business executive as gift
(gifts not exceeding 50,000/- in value in a
Financial year by employer to Employee will not • Free Samples
be treated as supply)
2nd June, 2017 30

CA RAJIV LUTHIA
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22nd April, 2017
DEEMED SUPPLY
• SUPPLY MADE WITHOUT CONSIDERATION- SCHEDULE I
Transactions Examples
Supply of Goods Consignment
• By principal to his agent where the agent undertakes to Agent
supply such goods on behalf of principal
• By agent to his principal where the agent undertakes to Buying agent

receive such goods on behalf of the principal
Importation of service by taxable person from a related Free Service from

person or from any of his other established outside India, in branch outside
the course or furtherance of business India
2nd June, 2017 31

CA RAJIV LUTHIA
MEANING OF RELATED PERSON – Section 15(5)

Persons shall be deemed to be “Related persons” if––
I. such persons are officers or directors of one another’s businesses;
II. such persons are legally recognized partners in business;
III. such persons are employer and employee;
IV. any person directly or indirectly owns, controls or holds twenty-five per
cent or more of the outstanding voting stock or shares of both of them;
V. one of them directly or indirectly controls the other;
VI. 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 the same family
VIII. One of them is sole agent/sole distributor or sole concisnor of other
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22nd April, 2017
Distinct Person – section 25(5)

Distinct Person
Person who has obtained or

required to obtain
More than 1 registration More than 1 establishment

in a state or UT or more in a state or UT or more than
than 1 state or UT 1 state or UT
E.g. :
• Mohan, a chartered Accountant, has a GST registered head office in Delhi. He
has also obtained registration in the state of WB in respect of his newly opened
branch office.
• Mohan shall be treated as distinct person in respect of registration in WB &
Delhi
SCHEDULE II- Goods v/s Service [Sec. 3(2)]

NATURE OF TRANSACTION NATURE EXAMPLE
TRANSFER OF TITLE IN GOODS GOODS Supply of goods
TRANSFER OF GOODS/RIGHT IN GOODS OR SERVICE COMPUTER HIRING
UNDIVIDED SHARE IN GOODS WITHOUT TRANSFER
OF TITLE
TRANSFER OF TITLE IN GOODS UNDER GOODS HIRE PURCHASE
AGREEMENT ON A FUTURE DATE UPON PAYMENT
OF CONSIDERATION
LEASE /TENANCY/EASMENT/LICENSE TO OCCUPAY SERVICE TENANCY
LAND
LEASE/LETTING OUT OF BUILDING FOR BUSINESS SERVICE LEAVE LICENSE
OR COMMERCE
JOB WORK ON OTHER GOODS SERVICE PROCESSING
TRANSFER OF BUSINESS ASSET GOODS SALE OF ASSET OTHER
THAN STOCK IN TRADE
MAKING AVAILABLE OF BUSINESS GOODS FOR SERVICE CAR GIVEN TO STAFF FOR
PRIVATE USE WHETHER OR NOT FOR MARRIAGE FUNCTION
CONSIDERATION
17
22nd April, 2017
SCHEDULE II - Goods v/s Service

NATURE OF TRANSACTION NATURE EXAMPLE
GOODS/ASSET ON CLOSURE OF BUSINESS OTHER GOODS WITHDRAWAL BY
THAN TRANSFER AS GOING CONCERN OR TRANSFER PARTNER
TO REPRESENTATIVE WHO IS TAXABLE PERSON
RENTING OF IMMOVABLE PROPERTY SERVICE RENTING
SALE OF UNDER CONSTRUCTION UNITS SERVICE BUILDER
TEMPORARY TRANSFER OF IPR SERVICE TRADE MARK, DESIGN
DEVELOPMENT ETC. OF IT SOFTWARE SERVICE SOFTWARE
DEVELOPMENT
AGREEING TO OBLIGATION TO DO ACT OR REFRAIN AN SERVICE NON COMPETE FEES
ACT
WORKS CONTRACT SERVICE CIVIL CONTRACT
TRANSFER OF RIGHT TO USE GOODS FOR ANY SERVICE RENT A CAB
PURPOSE
SUPPLY OF FOOD AS A PART OF SERVICE SERVICE RESTAURANT
SUPPLY OF GOODS BY UNINCORPORATED GOODS
ASSOCIATION
2nd June, 2017 TO ITS MEMBER CA RAJIV LUTHIA 35
ACTIVITY/TRANSACTION NEITHER SUPPLY OF GOODS NOR

SERVICE – Schedule III
• Service by Employee to Employer in course of or in relation
to employment
• Service by court/Tribunal under any law
• Function performed by MP/MLA/Corporator etc.
• Duties performed by person who hold post in pursuance to
constitution
• Duties by chairperson/director in body established by
CG/SG
• Service by Foreign Diplomatic mission
• Service of Funeral, burial, crematorium or mortuary
including transportation of deceased…Exemption granted
36
vide entry number 74 of Notification 12/2017-CT (R) to
service
2nd June, 2017 of transportation to patitent
CA RAJIV LUTHIA
18
22nd April, 2017
ACTIVITY/TRANSACTION NEITHER SUPPLY OF GOODS NOR

SERVICE – Schedule III
• Sale of land and, subject to paragraph 5(b) of schedule II,
sale of building
• Actionable claims, other than lottery, betting & gambling
• Such activities/transaction undertaken by central
government or state government or local authority in
which they are engaged as public authorities, as may be
notified by govt. on the recommendation of council shall
be treated neither as a supply of goods nor supply of
service.
• Notification 14/2017-CT (R) dated 28th June, 2017 has notified
service by way of activity in relation to a function entrusted to a
Panchayat under article 243G of the constitution for said purpose
NIL Rated, Non Taxable & Exempt Supply

Nil Rated Non Taxable Exempt Supply –
Supply Supply – 2(78) 2(47)
Supply of goods or service:

Supply of • which attract NIL rate of
Supply of
goods or Tax; or
goods or
service which • Wholly exempt from tax
service
Meaning is not u/s 11 of CGST or;
which
leviable to • Wholly exempt from tax
attract NIL
tax under u/s 6 of IGST or;
rate of Tax
this Act • Non Taxable supply
Vegetable, Petrol, Medical service, Renting of

Example Salt, Human Electricity, residential house
Blood Alcohol
19
22nd April, 2017
Zero Rated Supply

• Section 16(1) of the IGST Act, 2017, which
states that “zero rated supply” means any of
the following supplies of goods or services or
both namely: ––
– a) export of goods or services or both; or
– b) supply of goods or services or both to a Special
Economic Zone developer or a Special Economic
Zone unit.
MIXED & COMPOSITE

SUPPLY
20
22nd April, 2017
MIXED SUPPLY – Section 2(74)

• The supply of two or more individual supplies of goods or
services, or both in conjunction of each other by a taxable person,
for a single price where such supply does not constitute a
composite supply, is called Mixed Supply.
• In Mixed Supply, the combination of goods and/or services for

single price which can otherwise supplied individually in the
ordinary course of business.
MIXED SUPPLY
• Tie, watch, wallet, and pen are bundled as a “kit”
• The “kit” is supplied for a single price. Hence, the supply of this
“kit” is a mixed supply.
Tax Liability of Mixed Supply
Product Rate of Tax*

Tie 18%
Watch 28%
Wallet 18%
Pen 12%
Since the watch attracts the highest rate of tax in above example i.e., 28%.
Hence, the mixed supply will be taxed at 28%.
21
22nd April, 2017
Example
Example 1:
• A supply of a package consisting of canned foods,
sweet, chocolates, cakes, dry fruits, aerated drink
& fruits juices when supplied for a single price is a
mixed supply.
• Each of these items can be supplied separately &

is not dependent on any other.
• It shall not be a mixed supply if these items are

supplied separately
COMPOSITE SUPPLY – Section 2(30)

• Composite Supply of goods and services means supply of two or
more taxable goods/service or both or combination thereof,
which are naturally bundled & in conjunction with each other in
ordinary course of business, one of which is a principal supply
• This means that the goods and services are bundled owing to
natural necessities.
• The pre-dominant element in the supply of goods or services,

forming part of composite supply, is principal supply, and any
other dependent supply, forming part of composite supplies, are
secondary to principal supply.
2nd June, 2017 44

CA RAJIV LUTHIA
22
22nd April, 2017
COMPOSITE SUPPLY
• This is a composite supply as the package of accommodation

facilities and breakfast is natural combination in the ordinary
course of business for a hotel.
• In this case, the hotel accommodation is the principal supply, and

breakfast is ancillary to the hotel accommodation.
TAXABILITY OF COMPSOITE SUPPLY

• Tax Liability
Product Rate of Tax*
Hotel Accommodation 18%
Restaurant Service other
12%
than alcohol
In this case, hotel accommodation is the principal supply, and

the entire supply will be taxed at 18%.
E.g 2 : Where goods are packed & transported with insurance,

the supply of goods, packing material, transport & insurance is a
composite supply & supply of goods is a principal supply
23
22nd April, 2017
WITH KNOWLEDGE……… WE KNOW THE WORDS,

BUT WITH EXPERIENCE……... WE KNOW THE MEANING
CA. Rajiv Luthia

R.J.Luthia & Associates,
Chartered Accountants
610/611, Parmeshwari Centre, Above FEDEX Motors, Dalmia Estate,
Off. LBS Marg, Mulund (West), Mumbai-400 090.
Tel : 2564 1553/2569 4989 Mobile : 9821143524
Email: rajiv@rjl.co.in
24

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22nd April, 2017

“CERTIFIED COURSE ON GST”

2nd June, 2017 CA RAJIV LUTHIA 2

• The 101st Constitution Amendment Act,2016 was passed by the

• GST is governed by 3 Central laws and 29 State laws.

2nd June, 2017 CA RAJIV LUTHIA 3

• The state governments have enacted SGST in their

2nd June, 2017 CA RAJIV LUTHIA 4

IMPORTANT CHANGES MADE IN CONSTITUTION

• Article 246A was inserted on 3rd August, 2016 which

– Notwithstanding anything contained in articles 246 and 254,

– Parliament has exclusive power to make laws with respect to

2nd June, 2017 CA RAJIV LUTHIA 5

IMPORTANT CHANGES MADE IN CONSTITUTION

– Explanation.—For the purposes of this clause, supply of goods,

IMPORTANT CHANGES MADE IN CONSTITUTION

– Parliament may, by law, formulate the principles for determining the

2nd June, 2017 CA RAJIV LUTHIA 7

IMPORTANT CHANGES MADE IN CONSTITUTION

• Article 248 – Residuary power of Legislation is now subject to

IMPORTANT CHANGES MADE IN CONSTITUTION

2nd June, 2017 CA RAJIV LUTHIA 9

IMPORTANT CHANGES MADE IN CONSTITUTION

– Entry 92 (newspapers and on advertisements published therein) has been

2nd June, 2017 CA RAJIV LUTHIA 10

IMPORTANT CHANGES MADE IN CONSTITUTION

– Entry 55 (advertisement taxes) have been deleted.

– Entry 62 (Taxes on luxuries, including taxes on entertainments,

2nd June, 2017 CA RAJIV LUTHIA 12

PROMINENT TAXES SUBSUMED IN GST

• Central Excise Duty • State VAT/Sales Tax

2nd June, 2017 CA RAJIV LUTHIA 13

COMMODITIES OUT OF GST PURVIEW

PRESENT INDIRECT TAX STRUCTURE

Sales Entry Tax/

Residuary Entry No. 54

Taxable Taxable Event

CST,ST, Excise etc

2nd June, 2017 CA RAJIV LUTHIA 16

WITHIN STATE OUTSIDE STATE

CGST SGST IGST

PARTICULARS GST ERA (Maharashtra) PRE GST ERA (Maharashtra)

Total Landing Cost 11,800/- Rs 12,084/-

Less : Input Credit available 1,800/- Rs. 684/-

Net Landing Cost 10,000/- Rs. 11,400/-

Effective Cost of goods likely to be reduced in “GST Era”

2nd June, 2017 CA RAJIV LUTHIA 19

Definition of Goods & Service

Every Kind of Anything other

i) Actionable claim Activities relating to:

2nd June, 2017 CA RAJIV LUTHIA 21

Definition of Business – 2(17)

2nd June, 2017 CA RAJIV LUTHIA 22

Payment in money or Monetary value of any

Excluding subsidy given by

When the supplier applies

• RECIPIENT – SECTION 2(93)

– (a) where a consideration is payable for the supply of goods or services or

2nd June, 2017 CA RAJIV LUTHIA 24

MEANING & SCOPE OF SUPPLY

Includes Importation of services for

Activities without consideration

Activities referred in Schedule II to be