COURT MANAGEMENT

PROJECT

TOPIC – GOODS AND SERVICE TAX ACT 2017

Submitted to : Submitted by :

Prof. Faizanurrehman Sir Abdullah Tanveer

INDEX

1. Introduction

2. Reasons of passing GST Act 2017

3. Evolution of GST

4. List of Sections under GST Act 2017

 CGST Act 2017

 IGST Act 2017

 UTGST Act 2017

ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher Professor Faizanurrehman sir
who gave me the golden opportunity to do this wonderful project on the topic ‘Goods and
Service Tax Act 2017 ’ , which also helped me in doing a lot of Research and i came to know
about so many new things I am really thankful to them.

Secondly i would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.

Introduction
GST is a single uniform indirect tax which was introduced to replace Central and State
indirect taxes such as VAT, CENVAT, and others. GST applies on all types of businesses,
small or large. This makes it one of the greatest tax reforms in the country. The entire
nation will follow a unified tax structure.

As the name suggests, GST will be applicable on both goods and services and India will
follow a dual system of GST to keep both the Centre and State independent of each other.
The GST council will be headed by the Union Finance Minister and it will consist of
various State Finance Ministers. GST will be devised as a four-tiered tax structure with
tax slabs of 5%, 12%, 18%, and 28% for various different categories of products and
services. 0% rate is kept for most essential goods such as rice, wheat.

Reasons for passing GST

The GST Bill has become one of the main points of discussion around the country thanks
to its ability to completely reform the whole taxation system in India. The objective of the
bill is to simplify the system for taxpayers by unifying the taxes applicable to consumers
and suppliers alike. GST was implemented after the approval of four bills passed by the
government, viz., Goods and Services Tax Bill, Integrated GST Bill, Compensation GST
Bill, and Union Territory GST Bill.

One of the reasons for the implementation of the GST Bill, as revealed by the Finance
Minister of India, Mr. Arun Jaitley, is the impact it will have in keeping inflation in
check. Moreover, the different kinds of taxes applicable to different commodities and
services in different states will be uniform across the country depending on the category
under which they fall, therefore removing ambiguity. Even individuals who are heavily
taxed can find some respite under GST.

Prior to 1 July, 2017, the Centre and the State calculated and charged taxes depending
upon the tax layers that were already being charged on a commodity or service, and not
the original price of the commodity or service. A move like this could adversely affect the
country’s GDP. Through the GST Bill, not only will business operations become
smoother, but it will also keep a check on tax evasion.

Through the GST Bill, the introduction of a multi-tier tax slab will see four tax slabs
applicable to commodities and services in India – 5%, 12%, 18% and 28%. Although
GST aimed at levying a uniform tax rate on all products and services, four different tax
slabs were introduced because daily necessities could not be subject to the same rate as
luxury items. As a result, the GST Bill is expected to have a good impact on the general
public as products of mass consumption, such as food grains, will not be taxed. Other
commodities and services that are commonly used, like soaps and toothpaste will attract
12%-18% tax, which is lower than the current rate of more than 20%. Even household
products such as refrigerators and washing machines will be cheaper as the rate of tax
now applicable to them is 28% as opposed to the previous rate of 30%-31%.

Evolution of GST in the Indian Context

GST is slated to be introduced in India after a 13 year long journey since it was first
discussed in the report of Kelkar Task Force ( 2003) on indirect taxes. I have listed below
the chronology of events outlining the major milestones on the proposal for introduction
of GST in India-

2006 - Proposal for unified tax regime

In 2006, a proposal to introduce a National level GST by April 1, 2010 was mooted in the
budget speech for financial year 2006-07.
2009 - Discussion paper on GST released

In order to take GST related work further, a Joint Working Group consisting of officers
from Central as well as State government was constituted in September, 2009.

Since the proposal involved reform/restructuring of not only indirect taxes levied by the
centre but also the states, responsibility of preparing a design and road map for the
implementation of GST was assigned to the Empowered Committee of State Finance
Ministers (EC). Based on input from Governments of India and States, the EC released its
first discussion paper on Goods and Service Tax in India in November,2009.

2011 - Constitutional Amendment proposed

In order to amend constitution to enable introduction of GST, the constitution 101th

Amendment Bill was introduced in the Lok Sabha in March 2011. As per the prescribed
procedure, the bill was referred to the Standing Committee on finance of the parliament
for examination and report.

2012-2013 development and deliberation GST architects

Meanwhile, in purchase of the decision taken in meeting between the Union Finance
Minister and the Empowered Committee of State Finance Ministers on 8 th Nov, 2012, a
‘Committee on GST Design ’ , consisting of the officials of the Government of India,
State govts and the EC was constituted.

The committee on GST design did a detail discussion on the framework of GST including
the bill and submitted its report in January 2013. Based on this report, the EC
recommended certain changes in the bill in their meeting at Bhubaneswar in January
2013.

The Empowered Committee in Bhubaneswar meeting also decided to constitute three

committees officers to discuss and report on various aspects of GST as follows:

1. Committee on place of supply rules and revenue neutral rates.

2. Committee on dual control, threshold and exemptions.

3. Committee on IGST and GST on imports.

The Parliamentary Standing Committee submitted its report in August 2013 to the Lok Sabha the
recommendations of the Empowered Committee and the recommendations of Parliamentary
Standing Committee were examined in the ministry in consultation with the legislative
department. Most of the recommendations made by the EC and the Parliamentary Standing
Committee were accepted and the draft amendment bill was suitably revised.
The final draft bill incorporating the above stated changes were sent to the EC for consideration
in Sept,2012

The EC once again made certain recommendations on the bill after its meeting in Shillong in
November 2013. Certain recommendations of the EC were incorporated in the draft bill. The
revised draft was sent for consideration of the EC in march,2014.

2014-15 Constitutional amendment passed by lower house.

In June,2014 the draft bill was sent to EC after approval by the new govt. Based on the broad
consensus reached with the EC on the contours of the bill, the cabinet on the Dec.17 ,2014
approved the proposal of the introduction of a bill in parliament for amending the Constitution
of India to facilitate the introduction of GST in the country. The bill was introduced in the Lok
Sabha in Dec .19, 2014 and was passed by the Lok Sabha on May 6, 2015 it was then referred to
the select committee of Rajya Sabha, which submitted its report on July 22, 2015.

2016 - The watershed year GST became a reality.

After almost a gap of one year, on August 3, 2016 the bill was passed by the Rajya Sabha as the
bill was amended after being passed by the lower house, the same was ratified in its current
amended form by the Lok Sabha on Aug.8, 2016. After these giant leap forward, 21 states(of
more than 50% of Indian states) ratified the constitutional amendment and finally the bill
received presidential assent on Sept.8, 2016.

The bill made changes to the legislative powers distributed between the states and the Centre it
has deleted certain important legislative entries such as entry 52 of list 2 (entry tax) and entry
92C of List 1( Service tax) and amended others such as entry 54 of list 2(taxes on sale of
petroleum,diesel,alcohol etc).

Once the bill received presidential assent, on Sept 12, 2016, the GST council(headed by central
and state finance ministers) was constituted by the president, foe deliberations and
recommendations on the specifics of the tax including tax rates or bands, exemptions, principles
and thresholds of levy, along with the solid time lines for implementation.

List of sections
The GST Act 2017 consists of Central Goods and Service Tax Act(CGST) which comprises of 174
Sections under 21 Chapters and Schedules, the Integrated Goods and Service Tax Act(IGST)
comprises of 25 Sections under 9 Chapters while Union territory Goods and Service Tax(UTGST)
comprises of 26 Sections under 9 Chapters. There is one more part of GST Act 2017 i.e Central
Goods and Services Tax(CGST) Rules,2017 consisting of 162 rules under 19 Chapters.

Central Goods and Service Tax Act (CGST)

Chapter: I

PRELIMINARY

Section 1 : Short title, extent and commencement.

Section 2 : Definitions.

Chapter: II

ADMINISTRATION

Section 3 : Officers under this Act.

Section 4 : Appointment of officers.

Section 5 : Powers of officers.

Section 6 : Authorisation of officers of State tax or Union territory tax as proper officer in certain
circumstances.

Chapter: III

LEVY AND COLLECTION OF TAX

Section 7 : Scope of supply.

Section 8 : Tax liability on composite and mixed supplies.

Section 9 : Levy and collection.

Section 10 : Composition levy.

Section 11 : Power to grant exemption from tax.

Chapter: IV

TIME AND VALUE OF SUPPLY

Section 12 : Time of supply of goods.

Section 13 : Time of supply of services.

Section 14 : Change in rate of tax in respect of supply of goods or services.

Section 15 : Value of taxable supply.

Chapter: V

INPUT TAX CREDIT

Section 16 : Eligibility and conditions for taking input tax credit.

Section 17 : Apportionment of credit and blocked credits.

Section 18 : Availability of credit in special circumstances.

Section 19 : Taking input tax credit in respect of inputs and capital goods sent for job work.

Section 20 : Manner of distribution of credit by Input Service Distributor.

Section 21 : Manner of recovery of credit distributed in excess.

Chapter: VI

REGISTRATION

Section 22 : Persons liable for registration.

Section 23 : Persons not liable for registration

Section 24 : Compulsory registration in certain cases.

Section 25 : Procedure for registration

Section 26 : Deemed registration

Section 27 : Special provisions relating to casual taxable person and non-resident taxable
person.

Section 28 : Amendment of registration.

Section 29 : Cancellation of registration.

Section 30 : Revocation of cancellation of registration.

Chapter: VII

TAX INVOICE, CREDIT AND DEBIT NOTES

Section 31 : Tax invoice

Section 32 : Prohibition of unauthorised collection of tax.

Section 33 : Amount of tax to be indicated in tax invoice and other documents.

Section 34 : Credit and debit notes.

Chapter: VIII

ACCOUNTS AND RECORDS

Section 35 : Accounts and other records.

Section 36 : Period of retention of accounts.

Chapter: IX

RETURNS

Section 37 : Furnishing details of outward supplies.

Section 38 : Furnishing details of inward supplies.

Section 39 : Furnishing of returns.

Section 40 : First return.

Section 41 : Claim of input tax credit and provisional acceptance thereof.

Section 42 : Matching, reversal and reclaim of input tax credit.

Section 43 : Matching, reversal and reclaim of reduction in output tax liability.

Section 44 : Annual return.

Section 45 : Final return.

Section 46 : Notice to return defaulters.

Section 47 : Levy of late fee.

Section 48 : Goods and services tax practitioners.

Chapter: X

PAYMENT OF TAX

Section 49 : Payment of tax, interest, penalty and other amounts.

Section 50 : Interest on delayed payment of tax.

Section 51 : Tax deduction at source.

Section 52 : Collection of tax at source.

Section 53 : Transfer of input tax credit.

Chapter: XI

REFUNDS
Section 54 : Refund of tax.

Section 55 : Refund in certain cases.

Section 56 : Interest on delayed refunds.

Section 57 : Consumer Welfare Fund.

Section 58 : Utilisation of Fund.

Chapter: XII

ASSESSMENT

Section 59 : Self-assessment.

Section 60 : Provisional assessment.

Section 61 : Scrutiny of returns.

Section 62 : Assessment of non-filers of returns.

Section 63 : Assessment of unregistered persons.

Section 64 : Summary assessment in certain special cases.

Chapter: XIII

AUDIT

Section 65 : Audit by tax authorities.

Section 66 : Special audit.

Chapter: XIV

INSPECTION, SEARCH, SEIZURE AND ARREST

Section 67 : Power of inspection, search and seizure.

Section 68 : Inspection of goods in movement.

Section 69 : Power to arrest.

Section 70 : Power to summon persons to give evidence and produce documents.

Section 71 : Access to business premises.

Section 72 : Officers to assist proper officers.

Chapter: XV

DEMANDS AND RECOVERY

Section 73 : Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or
suppression of facts.

Section 74 : Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised by reason of fraud or any wilfull-misstatement or suppression
of facts.

Section 75 : General provisions relating to determination of tax.

Section 76 : Tax collected but not paid to Government.

Section 77 : Tax wrongfully collected and paid to Central Government or State Government.

Section 78 : Initiation of recovery proceedings.

Section 79 : Recovery of tax.

Section 80 : Payment of tax and other amount in instalments.

Section 81 : Transfer of property to be void in certain cases.

Section 82 : Tax to be first charge on property.

Section 83 : Provisional attachment to protect revenue in certain cases.

Section 84 : Continuation and validation of certain recovery proceedings.

Chapter: XVI

LIABILITY TO PAY IN CERTAIN CASES

Section 85 : Liability in case of transfer of business.

Section 86 : Liability of agent and principal.

Section 87 : Liability in case of amalgamation or merger of companies.

Section 88 : Liability in case of company in liquidation.

Section 89 : Liability of directors of private company.

Section 90 : Liability of partners of firm to pay tax.

Section 91 : Liability of guardians, trustees, etc.

Section 92 : Liability of Court of Wards, etc.

Section 93 : Special provisions regarding liability to pay tax, interest or penalty in certain cases.

Section 94 : Liability in other cases.

Chapter: XVII

ADVANCE RULING

Section 95 : Definitions.

Section 96 : Authority for advance ruling.

Section 97 : Application for advance ruling.

Section 98 : Procedure on receipt of application.

Section 99 : Appellate Authority for Advance Ruling.

Section 100 : Appeal to Appellate Authority.

Section 101 : Orders of Appellate Authority.

Section 102 : Rectification of advance ruling.

Section 103 : Applicability of advance ruling.

Section 104 : Advance ruling to be void in certain circumstances.

Section 105 : Powers of Authority and Appellate Authority.

Section 106 : Procedure of Authority and Appellate Authority.

Chapter: XVIII

APPEALS AND REVISION

Section 107 : Appeals to Appellate Authority.

Section 108 : Powers of Revisional Authority.

Section 109 : Constitution of Appellate Tribunal and Benches thereof.

Section 110 : President and Members of Appellate Tribunal, their qualification, appointment,
conditions of service, etc.

Section 111 : Procedure before Appellate Tribunal.

Section 112 : Appeals to Appellate Tribunal

Section 113 : Orders of Appellate Tribunal.

Section 114 : Financial and administrative powers of President.

Section 115 : Interest on refund of amount paid for admission of appeal.

Section 116 : Appearance by authorised representative.

Section 117 : Appeal to High Court.

Section 118 : Appeal to Supreme Court.

Section 119 : Sums due to be paid notwithstanding appeal, etc.

Section 120 : Appeal not to be filed in certain cases.

Section 121 : Non-appealable decisions and orders.

Chapter: XIX

OFFENCES AND PENALTIES

Section 122 : Penalty for certain offences.

Section 123 : Penalty for failure to furnish information return.

Section 124 : Fine for failure to furnish statistics.

Section 125 : General penalty.

Section 126 : General disciplines related to penalty.

Section 127 : Power to impose penalty in certain cases.

Section 128 : Power to waive penalty or fee or both.

Section 129 : Detention, seizure and release of goods and conveyances in transit

Section 130 : Confiscation of goods or conveyances and levy of penalty.

Section 131 : Confiscation or penalty not to interfere with other punishments.

Section 132 : Punishment for certain offences.

Section 133 : Liability of officers and certain other persons.

Section 134 : Cognizance of offences.

Section 135 : Presumption of culpable mental state.

Section 136 : Relevancy of statements under certain circumstances.

Section 137 : Offences by companies.

Section 138 : Compounding of offences.

Chapter: XX

TRANSITIONAL PROVISIONS

Section 139 : Migration of existing taxpayers.

Section 140 : Transitional arrangements for input tax credit.

Section 141 : Transitional provisions relating to job work.

Section 142 : Miscellaneous transitional provisions.

Chapter: XXI

MISCELLANEOUS

Section 143 : Job work procedure.

Section 144 : Presumption as to documents in certain cases.

Section 145 : Admissibility of micro films, facsimile copies of documents and computer printouts
as documents and as evidence.

Section 146 : Common Portal.

Section 147 : Deemed Exports.

Section 148 : Special procedure for certain processes.

Section 149 : Goods and services tax compliance rating.

Section 150 : Obligation to furnish information return.

Section 151 : Power to collect statistics.

Section 152 : Bar on disclosure of information.

Section 153 : Taking assistance from an expert.

Section 154 : Power to take samples.

Section 155 : Burden of proof.

Section 156 : Persons deemed to be public servants.

Section 157 : Protection of action taken under this Act.

Section 158 : Disclosure of information by a public servant.

Section 159 : Publication of information in respect of persons in certain cases.

Section 160 : Assessment proceedings, etc., not to be invalid on certain grounds.

Section 161 : Rectification of errors apparent on the face of record.

Section 162 : Bar on jurisdiction of civil courts.

Section 163 : Levy of fee.

Section 164 : Power of Government to make rules

Section 165 : Power to make regulations.

Section 166 : Laying of rules, regulations and notifications.

Section 167 : Delegation of powers.

Section 168 : Power to issue instructions or directions.

Section 169 : Service of notice in certain circumstances.

Section 170 : Rounding off of tax, etc.

Section 171 : Anti-profiteering measure.

Section 172 : Removal of difficulties.

Section 173 : Amendment of Act 32 of 1994.

Section 174 : Repeal and saving.

SCHEDULES

SCHEDULE 01 [Section 7] : ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT

CONSIDERATION

SCHEDULE 02 [Section 7] : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF

SERVICES

SCHEDULE 03 [Section 7] : ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER

AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

Integrated Goods and Service Tax 2017

Chapter I
Preliminary

Section 1 - short title extent and commencement

Section 2 - definitions

Chapter II

Administration

Section 3 - appointment of officers

Section 4 - authorisation of officers of state tax or union territory tax as proper officer in certain
circumstances

Chapter III

Levy and Collection of tax

Section 5 - levy and collection

Section 6 - power to grant exemption from tax

Chapter IV

Determination of Nature of Supply

Section 7 - inter-state supply

Section 8 - intra-state supply

Section 9 - supplies in territorial waters

Chapter V

Place of Supply of goods or services or both

Section 10 - Place of supply of goods other than supply of goods imported into or exported from
India

Section 11 - Place of supply of goods imported into or exported from India

Section 12 - Place of supply of services where location of supplier and recipient is in India

Section 13 - Place of supply of services where location of supplier or location of recipient is

outside india

Section 14 - Special provision for payment of tax by a supplier of online information and
database access or retrieval services
Chapter VI

Refund of Integrated Tax to International Tourist

Section 15 - refund of integrated tax paid on supply of goods to tourist leaving India

Chapter VII

Zero Rated Supply

Section 16 - zero rated supply

Chapter VIII

Apportionment of tax and settlement of funds

Section 17 - Apportionment of tax and settlement of funds

Section 18 - Transfer of input tax credit

Section 19 - Tax wrongfully collected and paid to central government or state government

Chapter IX

Miscellaneous

Section 20 - Application of provisions of central goods and services tax act

Section 21 - Import of services made on or after the appointed day

Section 22 - Power to make rules

Section 23 - Power to make regulations

Section 24 - Laying of rules regulations and notifications

Section 25 - Removal of difficulties

Union Territory Goods and Service Tax (UTGST) 2017

CHAPTER – I

PRELIMINARY

Section 1: Short Title, Extent and Commencement

Section 2: Definitions

CHAPTER – II
ADMINISTRATION

Section 3: Officers under this Act

Section 4: Authorisation of Officers

Section 5: Powers of Officers

Section 6: Authorisation of Officers of Central Tax as Proper Officer

CHAPTER – III

LEVY AND COLLECTION OF TAX

Section 7: Levy and Collection of Tax

Section 8: Power to Grant Exemption from Tax

CHAPTER – IV

PAYMENT OF TAX

Section 9: Payment of Tax

Section 10: Transfer of Input Tax Credit (ITC)

CHAPTER – V

INSPECTION, SEARCH, SEIZURE AND ARREST

Section 11: Officers Required to Assist Proper Officers

CHAPTER – VI

DEMAND AND RECOVERY

Section 12: Tax Collected Wrongfully and paid to Central/ UT Govt

Section 13: Recovery of Tax

CHAPTER – VII

ADVANCE RULING

Section 14: Advance Ruling – Definitions

Section 15: Constitution of Authority for Advance Ruling

Section 16: Constitution of Appellate Authority for Advance Ruling

CHAPTER – VIII

TRANSITIONAL PROVISIONS

Section 17: Migration of Existing Tax Payers (Transitional Provisions)

Section 18: Transitional Arrangements for Input Tax Credit (ITC)

Section 19: Transitional Provisions relating to Job Work

Section 20: Miscellaneous Transitional Provisions

CHAPTER – IX

MISCELLANEOUS

Section 21: Application of Provisions of CGST Act

Section 22: Power to Make Rules

Section 23: General Power to Make Regulations

Section 24: Laying of Rules, Regulations and Notifications

Section 25: Power to Issue Instructions or Directions

Section 26: Removal of Difficulties