what about gst bill and what does gst exclusive mean
Dr.JakeFinlay,Germany,Teacher
Published Date:22-07-2017
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Revised Model GST Law
(Nov 2016)Components of GST
Central GST (CGST) - Levy on supply of ALL goods and/ or
services within a particular State, by the Central Government
State GST (SGST) - Levy on supply of ALL goods and/ or
services within a particular State, by the respective State
Government
Integrated GST (IGST) – Levy on ALL inter-State supplies of
goods and/ or services, by the Central Government
www.ThesisScientist.comConcept of CGST, SGST and IGST
Leviable on Supply of Goods and Services
Levy on transaction value with set-off of input tax
Backed by Goods and Services Tax Network (GSTN)
www.ThesisScientist.comConcept of CGST, SGST and IGST
Possible rate structure
Exempt Supplies: Nil-rate, zero percent supplies
Zero-Rated Supplies: Exports and supplies to SEZ
Supplies taxable at 5%
Supplies taxable at 12%
Supplies taxable at 18%
Supplies taxable at 28%
www.ThesisScientist.comConcept of Supply – Sec. 3 GST Model Law
Section 3 - Meaning and scope of supply
Other matters
Section 3(1)(a) Section 3(1)(b) Section 3(1)(c)
All forms of supply of Importation of Supplies specified• Composite
goods and/ or services, service, - To be treated as supplies made without a Supply
- for a consideration - for a consideration consideration• Mixed Supply
- in the course or - whether or not
furtherance of business in the course or Schedule I:
such as: furtherance of 1. Permanent transfer/ disposal of business
- sale, business assets for which ITC availed
- transfer, 2. Supplies between related persons/ distinct
- barter, persons in the course or furtherance of business
- exchange, 3. Supply of goods by principal (or agent) to
- license, agent (or principal)
- rental, 4. Importation of service from a related
- lease or person or from any of his other establishments
- disposal outside India, in the course or furtherance of
business.
www.ThesisScientist.comMeaning and Scope of Supply
Supply comprises: Cases to consider:
• Included supplies• Purpose of supply – business or not
• Implied supplies (Sch I)• Same forms of supply apply to
• Excluded supplies (Sch III & IV) services
• Supply by casual taxable person
Chargeability to tax:
• ISD or inter-branch service transfer
Forward charge on supplier
• Intra-State stock transfer
Reverse charge on imports
• Free samples and warranty are
Lateral charge (e-commerce)
supplies for consideration
Supply characterization:
• Material supplied for job-work
Composite supply or
• Sch II not exhaustive but specific
Mixed supply
• No supply, no tax but no credit too
www.ThesisScientist.comPrinciples Determining
Supply as inter-State or
intra-State
www.ThesisScientist.comSection 3 of IGST Act, 2016 – Principles to
determine a supply as an inter-State Supply
Determination of supply of goods and/ or services as Inter-State supply
CRITICAL factors: Where the below 2 are in DIFFERENT STATES
a) Location of the supplier and
b) Place of supply determined u/s 7,8, 9 or 10 of IGST Act
Specific INCLUSIONS:
• Supply of goods in the course of import, till they cross the customs frontiers of India
• Supply of services in the course of import
• Supply when place of supply is outside India but supplier is in India
• Supply to or by a SEZ developer or an SEZ unit
• Residuary supply: Any supply in the taxable territory and which is not an intra-State supply
(E.g.: Supply of goods from within a Union Territory(“UT”) without Legislature)
www.ThesisScientist.comGST on Goods
Intra-State Supply Inter-State Supply
CGST-SGST
‘From’ location ‘To’ location ‘To’ location
IGST
Dual tax – CGST-SGST One tax – IGST (higher rate)
Registered office not relevant; location of goods is Movement for „delivery‟ relevant; even stock-
relevant transfer taxable
Intra-State supply, if „from‟ and „to‟ in one State Imports – basic customs + IGST
www.ThesisScientist.comGST on Services
Intra-State Supply Inter-State Supply
CGST-SGST
Place of usage of service or
Supplier’s address of Place of usage of
recipient’s address of GST
GST registration service
registration
IGST
Dual tax – CGST-SGST One tax – IGST (higher rate)
Place of usage relevant Imports – receiver to pay IGST
„Test‟ of such place listed for various services When „place of usage‟ not fixed, use recipient‟s
address
www.ThesisScientist.comSection 4 of IGST Act, 2016 – Principles to
determine a supply as an intra-State Supply
Determination of supply of goods and/ or services as Intra-State supply
CRITICAL factors: Where the below 2 are in the SAME STATE
a) Location of the supplier and
b) Place of supply determined u/s 7,8, 9 or 10 of IGST Act
Specific EXCLUSIONS:
• Supplies to or by a SEZ developer/ SEZ unit;
• Importation of goods till they cross the customs frontiers of India.
www.ThesisScientist.comIllustrations
Supply Supplier Place of Supply Result
Goods Karnataka Tamil Nadu Inter-State (IGST)
Services Pondicherry Kerala Inter-State (IGST)
Goods Chandigarh Chandigarh Inter-State (IGST)
Services Chandigarh Punjab Inter-State (IGST)
Goods Punjab Chandigarh Inter-State (IGST)
Goods Delhi Delhi Intra-State (CGST/SGST)
Services Rajasthan Rajasthan Intra-State (CGST/SGST)
Note: Chandigarh is a UT without Legislature;
Explanation to Section 2(2) provides that the term “State” includes a UT with Legislature (Of the 7
UTs, Delhi and Pondicherry are the only 2 UTs with Legislature). In case of a Union Territory if it
adopts the legislature of a particular State say Punjab, then it will be intra-State supply.
www.ThesisScientist.comChapter – III of CGST Act
www.ThesisScientist.comLevy & Collection
Goods means every kind of movable property and:
• Includes actionable claim
• Excludes money and securities
o NO specific exclusion for intangible property
Services means anything other than goods :
• Includes transactions in money – in relation to use / conversion
• Excludes money and securities
www.ThesisScientist.comLevy & Collection
• Services
1: Subject
• Goods
• Goods as services
2: Supply
• Included
• Implied
• Excluded
3: Place
• Inter-State
• Intra-State
4: Time
• Specified for goods
• Specified for services
www.ThesisScientist.comLevy & Collection
Description Composite Supply Mixed Supply
Naturally bundled Yes No
Supplied together Yes Yes
Can be supplied separately No Yes
One is predominant supply for recipient Yes No
Other supply is not „aim in itself‟ of recipient Yes No
Each supply priced separately No No
All supplies are goods Yes Yes
All supplies are services Yes Yes
One supply is goods and other supply is services Yes Yes
While, the above tests could be guiding principles in determining as to whether a supply is composite or mixed supply
the end user test could be adopted as one of the criteria; Every supply will have to be independently analysed.
www.ThesisScientist.comComposition Levy
www.ThesisScientist.comComposition Levy– Sec. 9 of Model GST Law
Availed
Allowed
Available
COT
IGST (2X)
Compliance
Eligible
2.5%
Manufacturers
1% - Others
www.ThesisScientist.comComposition Levy– Sec. 9 of Model GST Law
Optional Scheme
Pay an amount in lieu of tax; minimum rate to be:
2.5% of the turnover in case of manufacturers;
1% of the turnover in other cases
No tax to be collected; No Input Tax Credit available
Conditions for Composition:
• Permission of Proper Officer required
• Registered persons
• Aggregate Turnover Rs. 50 Lakhs (all-India basis for taxable persons having
same PAN – who shall also opt for composition) but excludes Sch III & IV
• Aggregate turnover = Value of all supplies (taxable + non-taxable + exempt +
exports) – Value of (RCM supplies + inward supplies) – taxes under GST
RCM supplies refers to value of supplies on which tax is levied on reverse charge basis
www.ThesisScientist.comComposition Levy– Sec. 9 of Model GST Law
No composition option in the following specific cases:
• Services supplied:
o Any/ all services (includes goods treated as supply of services by Sch II)
• Goods supplied:
o Non-taxable goods
o Inter-State outward supplies
o Through e-commerce operators
o Notified goods manufactured by the supplier
If aggregate turnover (all India basis) of preceding FY exceeds 50 Lakhs (If
during the FY, the aggregate turnover exceeds 50 Lakhs, no composition
from the following day.)
www.ThesisScientist.com
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