IGST Analysis

IGST : THE INTEGRATED GOODS & SERVICES TAX ACT, 2017
Old Model GST Law June 2016 New Model GST Law Nov 2016
Sec(Sub- Clause Provision Sec Clause Provision Impact Analysis

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New Clause 2(1) Accounts means an account bearing interest New definition of Account has
to the depositor, and been inserted which refers to bank
includes a non-resident external account. It seems that interest
account and a non-resident may be exempted from payment
ordinary account of GST.
2(a) appropriate State in relation to a taxable 2(2) appropriate State in relation to a taxable person, No Change
person, means that State means that State where he is
where he is registered or registered or liable to be registered
liable to be registered under under section 23 of the Central
section 19 of the Central Goods and Services Tax Act, 2016.
Goods and Services Tax Act,
2016.
Explanation: For the purpose
of this Act, State includes
Union Territory with
Legislature.
New Clause 2(3) Banking company has the meaning assigned to it in Newly inserted definition so as to
clause (a) of section 45A of the cover the transaction by the
Reserve Bank of India Act, 1934 (2 Banks.
of 1934);
New Clause 2(4) customs frontiers of means the limits of the area of a Newly inserted definition so as to
India customs station as defined in cover Bonded warehouses and
section 2 of the Customs Act, 1962 hence clearance title change
(52 of 1962) in which imported before crossing customs frontiers
goods are ordinarily kept before will not be subjected to GST.
clearance by customs authorities.
2(5) export of goods export of goods with its No Change
grammatical variations and cognate
expressions, means taking goods
out of India to a place outside India;

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2(44) export of services (44) the supply of any service 2(6) export of services (6) export of services means the Alignment of definition.
shall be treated as export of supply of any service when
service when (a) the supplier of service is located
(a) the supplier of service is in India,
located in India, (b) the recipient of service is
(b) the recipient of service is located outside India,
located outside India, (c) the place of supply of service is
(c) the place of supply of outside India,
service is outside India, (d) the payment for such service
(d) the payment for such has been received by the supplier
service has been received by of service
the supplier of service in in convertible foreign exchange,
convertible foreign and
exchange, and (e) the supplier of service and
(e) the supplier of service recipient of service are not merely
and recipient of service are establishments of a distinct person
not merely establishments of in accordance with explanation 1 of
a section 5;
distinct person;
Explanation.- For the
purposes of clause (e), an
establishment of a person in
India and
any of his other
establishment outside India
shall be treated as
establishments of distinct
persons.
New Clause 2(7) financial institution has the meaning assigned to it in Newly inserted definition so as to
clause (c) of section 45- I of the cover the transaction by the
Reserve Bank of India Act, 1934 Financial institutions like States
(2 of 1934); financial corporation, NBFC etc.
46 fixed means a place (other than 2(8) fixed establishment means a place other than the Definition of fixed establishment
establishment the place of business) which registered place of business has excluded registered place of

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is characterised by a which is characterized by a business
sufficient degree of sufficient degree of permanence
permanence and suitable and suitable structure in terms of
structure in terms of human human and technical resources to
and technical resources to supply services, or to receive and
supply services, or to receive use services for its own needs;
and use services for its
own needs;
2(10) import of goods import of goods with its No Change
grammatical variations and cognate
expressions, means bringing goods
into India from a place outside
India;
52 import of (52) the supply of any service 2(11) import of service (11) import of service means the Alignment of definition.
service shall be treated as an supply of any service, where
import of service if, (a) the supplier of service is located
(a) the supplier of service is outside India,
located outside India, (b) the recipient of service is
(b) the recipient of service is located in India, and
located in India, (c) the place of supply of service
(c) the place of supply of is in India;
service is in India, and
(d) the supplier of service
and the recipient of service
are not merely
establishments of a
distinct person;
Explanation 1.- An
establishment of a person in
India and any of his other
establishment
outside India shall be treated
as establishments of distinct
persons.

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Explanation 2.- A person
carrying on a business
through a branch or agency
or
representational office in any
territory shall be treated as
having an establishment in
that territory.
New Clause 2(12) intermediary means a broker, an agent or any Newly inserted definition similar
other person, by whatever name to existing provisions of Place of
called, who arranges or facilitates Provision of Rules.
the supply of a service
(hereinafter called the main
service) or the supply of goods,
between two or more persons,
but does not include a person
who supplies the main service or
supplies the goods on his
account;
2(c) Integrated means tax levied under this Both explanations shifted to
Goods &Services Act section 4
Tax (IGST) on the supply of any goods
and/or services in the course
of inter-State trade or
commerce.
Explanation 1.- A supply of
goods and/or services in the
course of import into the
territory of India shall be
deemed to be a supply of
course
of inter-State trade or
commerce.

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Explanation 2.- An export of
goods and/or services shall
be deemed to be a supply of
course of inter-State trade or
commerce.
2(d) "input tax" in relation to a taxable 2(14) "input tax" in relation to a taxable person, No change except section
person, means the means the Integrated Goods and alignment.
Integrated Goods and Services Tax, Central Goods and
Services Tax, Central Goods Services Tax or State Goods and
and Services Tax or State Services Tax, as the case may be,
Goods and Services Tax, as charged on any supply of goods
the case may be, charged on and/or services to him which are
any supply of goods and/or used, or are intended to be used,
services to him which are in the course or furtherance of his
used, or are intended to be business and includes the tax
used, in the course or payable under sub-section (2 3) of
furtherance of his business section 5 4;
and includes the tax payable
under sub-section (3) of
section 4;
2(e) input tax credit means credit of input tax as 2(15) input tax credit means credit of input tax as No change except section
defined in clause (d) of defined in sub-section alignment.
subsection (1) of section 2; (15);
2(16) input tax credit input tax credit means credit of No Change
input tax as defined in sub-section
(15);
2(17) location of the recipient location of the recipient of No Change
services means:
(a) where a supply is received at a
place of business for which
registration
has been obtained, the location of
such place of business;

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(b) where a supply is received at a
place other than the place of
business for
which registration has been
obtained, that is to say, a fixed
establishment
elsewhere, the location of such
fixed establishment;
(c) where a supply is received at
more than one establishment,
whether the
place of business or fixed
establishment, the location of the
establishment
most directly concerned with the
receipt of the supply; and
(d) in absence of such places, the
location of the usual place of
residence of
the recipient;
New Clause 2(18) non-banking financial means- (i) a financial institution Newly inserted definition so as to
company which is a company; or cover the all the transactions
(ii) a non-banking institution related to NBFC.
which is a company and which has
as its principal business the
receiving of deposits, under any
scheme or arrangement or in any
other manner, or lending in any
manner; or
(iii) such other non-banking
institution or class of such
institutions, as the Reserve
Bank of India may, with the
previous approval of the Central

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Government and by notification in
the Official Gazette specify;
New Clause 2(19) non-taxable online means Government, a local Definition has been inserted so as
recipient authority, a governmental to exclude any downloads or data
authority, an individual or any retrieval of personal purpose. This
person not registered under is very welcome step.
section 23 19 of the CGST Act,
2017 receiving online information
and database access or retrieval
services in relation to any purpose
other than commerce, industry or
any other business or profession,
located in taxable territory;
Explanation.- For the purposes of
this clause, governmental
authority means an
authority or a board or any other
body:
(i) set up by an Act of Parliament
or a State legislature; or
(ii) established by Government,
with 90% or more participation by
way of equity or control, to carry
out any function entrusted to a
municipality under article 243Wof
the Constitution
New Clause 2(20) online information and means services whose delivery is Newly inserted definition so as to
database access or mediated by information carve out separate taxability for
retrieval services technology over the internet or an these services.
electronic network and the nature
of which renders their supply
essentially automated and
involving minimal human
intervention, and impossible to

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ensure in the absence of
information technology and
includes electronic services such
as,-
(i) advertising on the internet;
(ii) providing cloud services;
(iii) provision of e-books, movie,
music, software and other
intangibles via telecommunication
networks or internet;
(iv) providing data or information,
retrievable or otherwise, to any
person, in electronic
form through a computer network;
(v) online supplies of digital
content (movies, television shows,
music, etc.); (vi) digital data
storage; and
(vii) online gaming;
New Clause 2(21) online information and (21) online information and New Clause
database access or database access or retrieval
retrieval services services means
services whose delivery is mediated
by information technology over the
internet or an
electronic network and the nature
of which renders their supply
essentially automated
and involving minimal human
includes electronic services such
as,-

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(a) advertising on the internet;
(b) providing cloud services;
(c) provision of e-books, movie,
intangibles via
telecommunication networks or
internet;
(d) providing data or information,
retrievable or otherwise, to any
person, in
electronic form through a computer
network;
(e) online supplies of digital content
(movies, television shows, music,
etc.);
(f) digital data storage; and
(g) online gaming;
2(90) Special Economic shall have the meaning 2(22) Special Economic Zone shall have the meaning assigned Newly inserted definition in IGST
Zone assigned to it in clause (za) of to it in clause (za) of section 2 of Act since it has been considered
section 2 of the Special the Special Economic Zones Act, at par with Exports & Imports.
Economic Zones Act, 2005 2005 (28 of 2005);
[28 of 2005];
New Clause 2(23) SEZ Developer means a person who, or a State Newly inserted definition
Government which, has been
granted by the Central
Government a letter of approval
under sub-section (10) of section
3 of the Special Economic Zones
Act, 2005 (28 of 2005) and
includes an Authority and a Co-
Developer as defined under
section 2 of the Special Economic
Zones Act, 2005 (28 of 2005)

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2(f) supply (24 f) supply has the same 2(24) supply has the same meaning as No change except section
meaning as assigned to it in assigned to it in section 3 of the alignment
section 3 of the CGST Act, CGST Act, 20176;
2016;
2(25) State State means------ New Clause
2(f) supply has the same meaning as 2(26) Supply supply has the same meaning as No Change
assigned to it in section 3 of assigned to it in section 3 of the
the CGST Act, 2016; CGST
Act, 2016;
New Clause 2(27) Tourist tourist means a person not New Clause
normally resident in India, who
enters India for a stay of not more
than six months for legitimate non-
immigrant purposes;
2(g) output tax in relation to a taxable 2(28) output tax output tax in relation to a taxable No Change
person, means the IGST person, means the IGST chargeable
chargeable under the under the Act on taxable supply of
Act on taxable supply of goods and/or services made by him
goods and/or services by him or his agent and excludes tax
or his agent and excludes tax payable by him on reverse charge
payable by him on reverse basis;
charge basis
New Clause 2(29) zero-rated supply shall have the meaning assigned to Newly inserted definition mainly
it under section 15; and to include specific supplies
including Supplies to SEZ Unit &
Developer.
Words and expressions not 2(30) Words and expressions not defined
defined in this Act shall have in this Act shall have the meaning
the meaning assigned to assigned to them in the Central
them in the Central Goods Goods and Service Tax Act, 2016.
and Service Tax Act, 2016.

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CHAPTER- II : PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER-STATE TRADE OR
COMMERCE
3(1) Supplies of goods and/or (1) Subject to the provisions of No Change
services in the course of section 7, supply of goods in the
inter-State trade or course of inter-State trade or
commerce commerce means any supply where
the location of the supplier and
the place of supply are in
different States.
3(2) Supplies of goods and/or (2) Subject to the provisions of No Change
services in the course of section 9, supply of services in the
inter-State trade or course of inter-State trade or
commerce commerce means any supply where
the location of the supplier and
the place of supply are in
different States
Newly incorporated 3(3) Supplies of goods and/or (3) Supply of goods and/or Supply of goods /services from
services in the course of services in the course of import outside India to customs frontiers
inter-State trade or into the territory of India till they of India is termed as supply in the
commerce cross the customs frontiers of course of inter-state trade or
India shall be deemed to be a commerce this is different than
supply of goods and/or services that of VAT / CST.
in the course of inter-State trade High Sea sale transaction would
or commerce. be treated as inter-state supply
(Note: Shifted from Explanation and therefore IGST will be
1 to definition of IGST) applicable on HSS and importer
will also have to pay IGST at the
time of import as a part of
Customs Duties.
Newly incorporated 3(4) Supplies of goods (4) Supply of goods and/or Export of goods/services would
and/or services in the services, when the supplier is be treated as supply in the course

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course of inter-State located in India and the place of of inter-state trade or commerce
trade or commerce supply is outside India, shall be including transaction of merchant
deemed to be a supply of goods exports.
and/or services in the course of
inter-State trade or commerce.
(Note: Shifted from Explanation 2
to definition of IGST, in a different
language)
Newly incorporated 3(5) Supplies of goods (5) Supply of goods and/ or Newly inserted provision for SEZ.
and/or services in the services to or by a SEZ developer Supply to or by SEZ would be
course of inter-State or an SEZ unit, shall be deemed to treated as inter-state supply even
trade or commerce be a supply of goods and/or though SEZ and the supplier/buyer
services in the course of inter- of the SEZ both are in the same
State trade or commerce. State and accordingly IGST will be
payable.
3(6) Supplies of goods and/or Supply of goods and/ or services to No Change
services in the course of or by a SEZ developer or an SEZ
inter-State trade or unit, shall be deemed to be a
commerce supply of goods and/or services in
the course of inter-State trade or
commerce.
3(7) Supplies of goods and/or Any supply of goods and/or services No Change
services in the course of in the taxable territory, not being
inter-State trade or an intra-State supply and not
commerce covered elsewhere in this section,
shall be deemed to be a supply of
goods and/or services in the course
of inter-State trade or commerce.
3A Supplies of goods (1) Subject to the provisions 4 Supplies of goods and/or (1) Subject to the provisions of Deemed inter-state supplies are
and/or services of section 5, intra-state services in the course of section 7, intra-State supply of excluded from intra-state supply
in the course of supply of goods means any intra-State trade or goods means provision
intra-State trade supply where the location of commerce any supply of goods where the
or the supplier and the place of location of the supplier and the
commerce supply are in the same State. place of supply are in the

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same State:
(2) Subject to the provisions PROVIDED that the intra-State
of section 6, intra-state supply of goods shall not include:
supply of services means any (i) supply of goods to or by a SEZ
supply where the location of developer or to or by an SEZ unit;
the supplier and the place of (ii) supply of goods brought into
supply are in the same State India in the course of import till
they cross the
customs frontiers of India.
(2) Subject to the provisions of
section 9, intra-State supply of
services means any supply of
services where the location of the
supplier and the place of supply
are in the same State:
PROVIDED that the intra-State
supply of services shall not include
supply of services to or by a SEZ
developer or to or by an SEZ unit.
CHAPTER III : LEVY AND COLLECTION OF TAX
4 Levy and (1) There shall be levied a tax 5 Levy and collection of (1) There shall be levied a tax called Charging section of IGST on all
collection of called the Integrated Goods Integrated Goods and the Integrated Goods and Services supplies of goods/services made in
Integrated Goods and Services Tax on all Services Tax Tax on all supplies of goods and/or the course of inter-state
and Services Tax supplies of goods and/or services made in the course of transaction except import of
services made in the course inter-State trade or commerce on goods. However, payment of IGST
of inter-State trade or the value determined under section on Import transaction will be as
commerce 15 of CGST Act, 2016 and at such per Section 3 of the Customs Act,
at the rate specified in the rates as may be notified by the 1972.
Schedule to this Act and Central Government in this behalf, Cap of IGST rate of 28% has been
collected in such manner as but not exceeding twenty eight specified.
may be percent, on the recommendation of
prescribed. Council and collected in such
(2) The Integrated Goods and manner as may be prescribed and
Services Tax shall be paid by shall be paid by every taxable

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every taxable person in person in accordance with the
accordance with the provisions of this Act. Electronic commerce operator
provisions of this Act. PROVIDED that the Integrated would liable to pay tax.
(3) Notwithstanding anything Goods and Services Tax on goods
contained in sub-section (2), imported into India shall be levied Categories of services will be
the Central Government and collected in accordance with identified by notification which are
may, on recommendation of the provisions of section 3 of the being provided through electronic
the Council, by notification, Customs Tariff Act, 1975 (51 of operator.
specify categories of supply 1975) at the point when duties of
of customs are levied on the said In case electronic operator does
goods and/or services the tax goods under section 12 of the not have any physical presence in
on which is payable on Customs Act, 1962 (52 of 1962), on India, then person representing
reverse charge basis and the a value as determined under the electronic operator in India would
tax first mentioned Act. be liable to pay tax or electronic
thereon shall be paid by the (2) The Central Government may, operator should appoint a
person receiving such goods on recommendation of the Council, representative for the purpose of
and/or services and all the by notification, specify categories of payment of tax.
provisions of this Act shall supply of goods and/or services the
apply to such person as if he tax on which is payable on reverse As stated in above point, under
is the person liable for paying charge basis and the tax thereon version 1 IGST would have been
the tax in relation to such shall be paid by the recipient of payable as soon as goods enter
goods and/or services. such goods and/or services and all territorial waters even if the same
(4) Notwithstanding anything the provisions of this Act shall apply would have been sold on high seas
contained in sub-section (1) to such recipient as if he is the thereafter and custom clearance is
but subject to such person liable for paying the tax in done by the buyer. Under version
conditions as may be notified relation to the supply of such goods 2 said anomaly has been corrected
in this behalf, no tax under and/or services. to provide that IGST shall be
this Act shall be payable by (3) The Central Government may, payable only when the duties of
any on the recommendation of the customs are payable. Hence high
taxable person in respect of Council, by sea sales will continue to enjoy
such supplies of goods notification, specify categories of exemption presently available
and/or services as are services the tax on which shall be under the CST Act, 1956.
specified in paid by the Export of service happens only if
Schedule . . . to the Act. electronic commerce operator if five conditions are fulfilled e.g. it is

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such services are supplied through not sufficient that if supplier is
it, and all the located in India and place of
provisions of this Act shall apply to supply is outside India can services
such electronic commerce operator said be to exported and hence
as if he is the zero rated. Further conditions like
person liable for paying the tax in receipt in foreign currency &
relation to the supply of such recipient is located outside India
services: needs to be satisfied for a
PROVIDED that where an electronic transaction to be treated as export
commerce operator does not have of service. Hence under version 1
a physical if
presence in the taxable territory, all the conditions are not satisfied
any person representing such it was not regarded as inter state
electronic commerce supply. In such case, classification
operator for any purpose in the of such supply as inter state or
taxable territory shall be liable to intra state was an issue. Hence
pay tax: such transactions would have
PROVIDED FURTHER that where an slipped the tax. Same has been
electronic commerce operator does corrected by delinking export of
not have service with supply when supplier
a physical presence in the taxable is located in India and place of
territory and also he does not have supply is outside India. Latter
a representative supply shall be treated as inter
in the said territory, such electronic state and shall be zero rated only if
commerce operator shall appoint a other conditions viz. recipient
person in the outside India and payment is
taxable territory for the purpose of received in foreign currency are
paying tax and such person shall be fulfilled. Otherwise IGST shall be
liable to pay tax. payable.
Explanation1: For the purposes of
this Act,- OECD has stated in the VAT
(i) an establishment of a person in Guidelines that if by shifting the
India and any of his other liability to pay tax on some other
establishments person results in efficient

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outside India, or collection, it must be done.
(ii) an establishment of a person in Version 2 provides that companies
a State and any of his other like Uber, Ola (exact categories will
establishments be stipulated) shall be treated as
outside that State, suppliers and not the actual cab
shall be treated as establishments owners and hence it shall be
of distinct persons. liability of said companies to pay
Explanation 2: A person carrying on the tax.
a business through a branch or an
agency or a
representational office in any
territory shall be treated as having
an establishment
in that territory.
10 Power to grant (1) If the Central or a State 6 Power to grant (1) Any exemption granted by the Version 2 hence provides that any
exemption from Government is satisfied that exemption from tax Central Government on the exemption applicable to CGST shall
tax it is necessary in the public recommendation of the Council, also be applicable to IGST unless
interest so to do, it may, on under section 11 of the CGST Act in otherwise provided.
the recommendation of the respect of intra- State supply of
Council, by notification, goods and/or services of any
exempt specified description, shall apply
generally either absolutely or mutatis mutandis to inter-State
subject to such conditions as supply of goods and/or services of
may be specified in the the said description unless
notification, goods and/or specifically provided otherwise.
services of any specified (2) If the Central Government is
description from the whole satisfied that it is necessary in the
or any public interest so to do, it may, on
part of the tax leviable the recommendation of the
thereon. Council, by notification, exempt
Explanation.- Where an generally either absolutely or
exemption under sub-section subject to such conditions as may
(1) in respect of any goods be specified in the notification,
and/or inter-State supply of goods and/or

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services from the whole of services of any specified description
the tax leviable thereon has from
been granted absolutely, the the whole or any part of the tax
taxable person providing leviable thereon.
such goods and/or services Explanation: Where an exemption
shall not pay the tax on such in respect of any goods and/or
goods services from
and/or services. the whole of the tax leviable
thereon has been granted
absolutely, the taxable person
providing such goods and/or
services shall not pay the tax on
such goods and/or
services.
(3) Where the Central Government
is satisfied that it is necessary in the
public
interest so to do, it may, on the
recommendation of the Council, by
special order in each
case, exempt from payment of tax,
under circumstances of an
exceptional nature to be
stated in such order, any goods
and/or services on which tax is
leviable.
(4) The Central Government may, if
it considers necessary or expedient
so to
do for the purpose of clarifying the
scope or applicability of any
notification issued under
sub-section (1) or order issued
under sub-section (2), insert an

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explanation in such
notification or order, as the case
may be, by notification at any time
within one year of
issue of the notification under sub-
section (1) or order under sub-
section (2), and every
such explanation shall have effect
as if it had always been the part of
the first such
notification or order, as the case
may be.
(5) Every notification issued under
sub-section (1) or sub-section (3)
and every order issued under sub-
section (2) shall (a) come into force
on the date of its issue by the
Central Government for publication
in the Official Gazette or from any
date subsequent to the date of its
issue as may be specified therein;
and
(b) be made available on the official
website of the department of the
Central Government.
CHAPTER IV : PLACE OF SUPPLY OF GOODS AND/OR SERVICES
5 Place of supply of (1) The provisions of this 7 Place of supply of goods (1) The provisions of this section Power of determination of place of
goods section shall apply to other than supply of shall apply to determine the place supply shifted to Central
determine the place of goods imported into, or of supply of goods other than Government instead of Law made
supply of goods. exported from India supply of goods imported into, or by the Parliament
(2) Where the supply exported from India.
involves movement of goods, (2) Where the supply involves
whether by the supplier or movement of goods, whether by

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the recipient or by any other the supplier or
person, the place of supply the recipient or by any other
of goods shall be the location person, the place of supply of
of the goods shall be the location of
goods at the time at which the goods at the time at which the
the movement of goods movement of goods terminates for
terminates for delivery to the delivery to the
recipient. recipient.
(2A) Where the goods are (3) Where the goods are delivered
delivered by the supplier to a by the supplier to a recipient or any
recipient or any other other
person, person, on the direction of a third
on the direction of a third person, whether acting as an agent
person, whether acting as an or otherwise,
agent or otherwise, before or before or during movement of
during movement of goods, goods, either by way of transfer of
either by way of transfer of documents of title to
documents of title to the the goods or otherwise, it shall be
goods deemed that the said third person
or otherwise, it shall be has received the
deemed that the said third goods and the place of supply of
person has received the such goods shall be the principal
goods and place of business of
the place of supply of such such person.
goods shall be the principal (4) Where the supply does not
place of business of such involve movement of goods,
person. whether by the
(3) Where the supply does supplier or the recipient, the place
not involve movement of of supply shall be the location of
goods, whether by the such goods at the
supplier time of the delivery to the
or the recipient, the place of recipient.
supply shall be the location (5) Where the goods are assembled
of such goods at the time of or installed at site, the place of

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the supply
delivery to the recipient. shall be the place of such
(4) Where the goods are installation or assembly.
assembled or installed at (6) Where the goods are supplied
site, the place of supply shall on board a conveyance, such as a
be vessel, an
the place of such installation aircraft, a train or a motor vehicle,
or assembly. the place of supply shall be the
(5) Where the goods are location at which such
supplied on board a goods are taken on board.
conveyance, such as a vessel, (7) Where the place of supply of
an goods cannot be determined in
aircraft, a train or a motor terms of subsection
vehicle, the place of supply (2), (3), (4), (5) or (6), the same shall
shall be the location at which be determined in a manner
such prescribed by
goods are taken on board. the Central Government on the
(6) Where the place of recommendation of the Council.
supply of goods cannot be
determined in terms of sub-
section
(2), (3), (4) and (5), the same
shall be determined by law
made by the Parliament in
accordance with the
recommendation of the
Council.
New Clause 8 Place of supply of (1) The place of supply of goods Place of supply of goods in case of
goods imported into, or imported into India shall be the import will be the place of importer
exported from India location of the importer. who files Bill of Entry.
(2) The place of supply of goods As per version 1, the port or
exported from India shall be the airport could have been
location outside India. considered as a place of supply
due to ambiguous language.

Sec) (Sub-
sec)
Version 2 has cured this anomaly
to provide that it is the location of
supplier and not the port which
shall be the place of supply.
6 Place of supply of (1) The provisions of this 9 Place of supply of (1) The provisions of this section
services section shall apply to services where the shall apply to determine the place Title of section changed from Place
determine the place of location of supplier of of supply of services where the of supply of service so as to give
supply of services. service and location of supplier of service and meaning to the transactions within
(2) The place of supply of the location of the the location of the recipient of India.
services, except the services recipient of service is in service is in India.
specified in sub-sections India (2) The place of supply of services, Service directly provided in relation
(4),(5), (6), (7), (8), (9), (10), except the services specified in to an immovable property has been
(11), (12), (13), (14) and (15), subsections (4), (5), (6), (7), (8), (9), covered under this clause.
made to a registered person (10), (11), (12), (13), (14) and (15),
shall be the location of such made to a registered person shall
person. be the location of such person. It is clarified that if the location of
(3) The place of supply of (3) The place of supply of services, the immovable property or boat or
services, except the services except the services specified in vessel is located outside India, the
specified in sub-sections (4), subsections (4), (5), (6), (7), (8), (9), place of supply shall be the
(5), (6), (7), (8), (9), (10), (11), (10), (11), (12), (13), (14) and (15), location of the recipient.
(12), (13), (14) and (15), made to any person other than a
made to any person other registered person shall be (a) the Adding the word "directly"
than a registered person location of the recipient where the construes an immediate link of a
shall be (i) the location of the address on record exists, and (b) service with an immovable
recipient where the address the location of the supplier of property. Only for such directly
on record exists, and services in other cases. linked services, place of supply
(ii) the location of the (4) The place of supply of services, - shall be the location of immovable
supplier of services in other (a) directly in relation to an property.
cases. immovable property, including
(4) The place of supply of services provided Similar to provisions applicable to
services, - by architects, interior decorators, domestic transactions.
(a) in relation to an surveyors, engineers and other
immovable property, related Hence address of recipient does
including services provided experts or estate agents, any not matter. Such institutions will

Sec) (Sub-
sec)
by architects, service provided by way of grant of have to pay IGST even if the
interior decorators, rights to receiver is located outside India.
surveyors, engineers and use immovable property or for
other related experts or carrying out or co-ordination of
estate agents, any construction work, or Hence if the vessel or boat is to be
service provided by way of (b) by way of lodging located outside India but the
grant of rights to use accommodation by a hotel, inn, recipient is located in India, place
immovable property or for guest house, homestay, of supply shall be in India and
carrying out club or campsite, by whatever hence will not be zero rated.
or co-ordination of name called and including a house
construction work, or boat or any other vessel, or Hence services of organizing an
(b) by way of lodging (c) by way of accommodation in any event outside India shall be the
accommodation by a hotel, immovable property for organizing place of recipient and not the
inn, guest house, homestay, any marriage or reception or place were event is held.
club or matters related therewith, official,
campsite, by whatever name social, cultural,
called and including a house religious or business function Version 2 brings more clarity in
boat or any other vessel, or including services provided in cases where pre-paid vouchers are
(c) by way of relation to sold through agents.
accommodation in any such function at such property, or
immovable property for (d) any services ancillary to the
organizing any marriage services referred to in clause (a), (b)
or reception or matters and (c), If is clarified that, if the event is
related therewith, official, shall be the location at which the held outside India, the place of
social, cultural, religious or immovable property or boat or supply shall be the location of the
business vessel is recipient.
function including services located or intended to be located:
provided in relation to such PROVIDED that if the location of the
function at such property, or immovable property or boat or Place of supply in case of pre-paid
(d) any services ancillary to vessel is vouchers has been changed to
the services referred to in located or intended to be located location of pre-payment received/
clause (a), (b) and (c), outside India, the place of supply such vouchers are sold, earlier it
shall be the location at which shall be the location was the place of address of
the immovable property or of the recipient. recipient as per record of service
provider. However, in order to

Sec) (Sub-
sec)
boat or vessel is located or Explanation: Where the immovable address the issue if intermediary
intended to be located. property or boat or vessel is located who buys the recharge voucher and
Explanation.- Where the in more further sells to consumer this
immovable property or boat than one State, the supply of provision has been made in the law.
or vessel is located in more service shall be treated as made in
than each of the States in
one State, the supply of proportion to the value for services
service shall be treated as separately collected or determined, If address of the recipient on
made in each of the States in in terms of the records of the supplier of service is
proportion to the value for contract or agreement entered into not available, the place of supply
services separately collected in this regard or, in the absence of shall be location of the supplier of
or determined, in terms of such contract or service
the agreement, on such other
contract or agreement reasonable basis as may be
entered into in this regard prescribed in this behalf. In case where leased circuit is
or, in the absence of such (5) The place of supply of installed in more than one State,
contract or restaurant and catering services, place of supply of such services
agreement, on such other personal shall be taken as in proportion to
reasonable basis as may be grooming, fitness, beauty the value of services so provided in
prescribed in this behalf. treatment, health service including each State as ascertained from the
(5) The place of supply of cosmetic and plastic terms of the contract or on such
restaurant and catering surgery shall be the location where other reasonable basis as may be
services, personal grooming, the services are actually performed. prescribed in this behalf.
fitness, beauty treatment, (6) The place of supply of services in
health service including relation to training and Provision is simplified
cosmetic and plastic surgery performance
shall be appraisal to
the location where the (a) a registered person, shall be the
services are actually location of such person;
performed. (b) a person other than a registered
(6) The place of supply of person, shall be the location where
services in relation to the
training and performance services are actually performed.
appraisal to (7) The place of supply of services

Sec) (Sub-
sec)
(a) a registered person, shall provided by way of admission to a
be the location of such cultural,
person; artistic, sporting, scientific,
(b) a person other than a educational, or entertainment
registered person, shall be event or amusement park or
the location where the any other place and services
services ancillary thereto, shall be the place
are actually performed. where the event is
(7) The place of supply of actually held or where the park or
services provided by way of such other place is located.
admission to a cultural, (8) The place of supply of services
artistic, sporting, scientific, provided by way of
educational, or (a) organization of a cultural,
entertainment event or artistic, sporting, scientific,
amusement park or educational or
any other place and services entertainment event including
ancillary thereto, shall be the supply of service in relation to a
place where the event is conference, fair, exhibition,
actually held or where the celebration or similar events, or
park or such other place is (b) services ancillary to organization
located. of any of the above events or
(8) The place of supply of services, or
services provided by way assigning of sponsorship of any of
of the above events,
(a) organization of a cultural, to
artistic, sporting, scientific, (i) a registered person, shall be the
educational or location of such person;
entertainment event (ii) a person other than a registered
including supply of service in person, shall be the place where
relation to a conference, fair, the event is actually held:
exhibition, celebration or PROVIDED that if the event is held
similar events, or outside India, the place of supply
(b) services ancillary to shall be the
organization of any of the location of the recipient.

Sec) (Sub-
sec)
above events or services, or Explanation: Where the event is
assigning of sponsorship of held in more than one State and a
any of the above events, consolidated
to amount is charged for supply of
(i) a registered person, shall services relating to such event, the
be the location of such place of supply of
person; such services shall be taken as
(ii) a person other than a being in the each of the States in
registered person, shall be proportion to the value
the place where the event is of services so provided in each
actually held. State as ascertained from the terms
Explanation.- Where the of the contract or
event is held in more than agreement entered into in this
one State and a consolidated regard or, in absence of such
amount contract or agreement, on
is charged for supply of such other reasonable basis as may
services relating to such be prescribed in this behalf.
event, the place of supply of (9) The place of supply of services
such by way of transportation of goods,
services shall be taken as including by mail or courier to,
being in the each of the (a) a registered person, shall be the
States in proportion to the location of such person;
value of (b) a person other than a registered
services so provided in each person, shall be the location at
State as ascertained from the which
terms of the contract or such goods are handed over for
agreement entered into in their transportation.
this regard or, in absence of (10) The place of supply of
such contract or agreement, passenger transportation service to
on (a) a registered person, shall be the
such other reasonable basis location of such person;
as may be prescribed in this (b) a person other than a registered
behalf. person, shall be the place where
(9) The place of supply of the

Sec) (Sub-
sec)
services by way of passenger embarks on the
transportation of goods, conveyance for a continuous
including by journey:
mail or courier to, PROVIDED that where the right to
(a) a registered person, shall passage is given for future use and
be the location of such the point of
person; embarkation is not known at the
time of issue of right to passage,
(b) a person other than a the place of supply of
registered person, shall be such service shall be determined in
the location at which such the manner specified in sub-
goods sections (2) or (3), as
are handed over for their the case may be.
transportation. Explanation: For the purposes of
(10) The place of supply of this sub-section, the return journey
passenger transportation shall be
service to treated as a separate journey even
(a) a registered person, shall if the right to passage for onward
be the location of such and return journey
person; is issued at the same time.
(b) a person other than a (11) The place of supply of services
registered person, shall be on board a conveyance such as
the place where the vessel,
passenger aircraft, train or motor vehicle, shall
embarks on the conveyance be the location of the first
for a continuous journey: scheduled point of
Provided that where the departure of that conveyance for
right to passage is given for the journey.
future use and the point of (12) The place of supply of
embarkation is not known at telecommunication services
the time of issue of right to including data transfer,
passage, the place of supply broadcasting, cable and direct to
of home television services to any
such service shall be person shall

Sec) (Sub-
sec)
determined in the manner (a) in case of services by way of
specified in sub-sections (2) fixed telecommunication line,
or (3), as leased
the case may be. circuits, internet leased circuit,
Explanation.- For the cable or dish antenna, be the
purposes of this sub-section, location where the
the return journey shall be telecommunication line, leased
treated as circuit or cable
a separate journey even if connection or dish antenna is
the right to passage for installed for receipt of services;
onward and return journey is (b) in case of mobile connection for
issued telecommunication and internet
at the same time. services provided on post-paid
(11) The place of supply of basis, be the location of billing
services on board a address of the recipient of services
conveyance such as vessel, on record of the supplier of
aircraft, services;
train or motor vehicle, shall (c) in cases where mobile
be the location of the first connection for telecommunication,
scheduled point of departure internet
of service and direct to home
that conveyance for the television services are provided on
journey. prepayment
(12) The place of supply of through a voucher or any other
telecommunication services means,
including data transfer, (i) through selling agent or a re-
broadcasting, cable and seller or a distributor of SIM
direct to home television card or re-charge voucher, shall be
services to any person address of the selling agent
shall or re-seller or distributor as per the
(a) in case of services by way record of the supplier at the
of fixed telecommunication time of supply; or
line, leased circuits, (ii) by any person to the final
internet leased circuit, cable subscriber shall be the location

Sec) (Sub-
sec)
or dish antenna, be the where such pre-payment is
location where the received or such vouchers are sold;
telecommunication line, (d) in other cases not covered in (b)
leased circuit or cable and (c) above, shall be the
connection or dish antenna is address of the recipient as per
installed for records of the supplier of the
receipt of services; service:
(b) in case of mobile PROVIDED that where address of
connection for the recipient as per records of the
telecommunication and supplier of
internet services provided service is not available, the place of
on post-paid basis, be the supply shall be location of the
location of billing address of supplier of service:
the recipient of services on PROVIDED FURTHER that if such
record pre-paid service is availed or the
of the supplier of services; recharge is
(c) in cases where mobile made through internet banking or
connection for other electronic mode of payment,
telecommunication and the location of the
internet service are recipient of services on record of
provided on pre-payment the supplier of services shall be the
through a voucher or any place of supply of
other means, be the location such service.
where Explanation: Where the leased
such pre-payment is received circuit is installed in more than one
or such vouchers are sold: State and a
Provided that if such pre- consolidated amount is charged for
paid service is availed or the supply of services relating to such
recharge is made through circuit, the place
internet of supply of such services shall be
banking or other electronic taken as being in each of the States
mode of payment, the in proportion to
location of the recipient of the value of services so provided in
services on each State as ascertained from the

Sec) (Sub-
sec)
record of the supplier of terms of the
services shall be the place of contract or agreement entered into
supply of such service. in this regard or, in absence of such
(13) The place of supply of contract or
banking and other financial agreement, on such other
services including stock reasonable basis as may be
broking prescribed in this behalf.
services to any person shall (13) The place of supply of banking
be the location of the and other financial services
recipient of services on the including stock
records of broking services to any person shall
the supplier of services: be the location of the recipient of
Provided that if the service is services on the
not linked to the account of records of the supplier of services:
the recipient of services, the PROVIDED that if the location of the
place of supply shall be recipient of services is not on the
location of the supplier of records of
services. the supplier, the place of supply
(14) The place of supply of shall be location of the supplier of
insurance services shall: services.
(a) to a registered person, be (14) The place of supply of
the location of such person; insurance services shall:
(b) to a person other than a (a) to a registered person, be the
registered person, be the location of such person;
location of the recipient of (b) to a person other than a
services on the records of registered person, be the location
the supplier of services. of the
(15) The place of supply of recipient of services on the records
advertisement services to of the supplier of services.
the Central Government, a (15) The place of supply of
State advertisement services to the
Government, a statutory Central Government,
body or a local authority a State Government, a statutory
meant for identifiable States, body or a local authority meant for

Sec) (Sub-
sec)
shall be identifiable States,
taken as located in each of shall be taken as located in each of
such States and the value of such States and the value of such
such supplies specific to each supplies specific to
State shall be in proportion each State shall be in proportion to
to amount attributable to amount attributable to service
service provided by way of provided by way of
dissemination in the dissemination in the respective
respective States as may be States as may be determined in
determined in terms of the terms of the contract or
contract or agreement entered into in this
agreement entered into in regard or, in the absence of such
this regard or, in the absence contract or agreement,
of such contract or on such other reasonable basis as
agreement, may be prescribed in this behalf.
on such other reasonable
basis as may be prescribed in
this behalf.
New Clause 10 Place of supply of (1) The provisions of this section Specific provision has been
services where the shall apply to determine the place inserted so as to cover the
location of the supplier of supply of services where the situation where either supplier or
or the location of the location of the supplier of service or recipient are outside India.
recipient is outside India the location of the recipient of
service is outside India.
(2) The place of supply of services As against general principles,
except the services specified in separate set of principles to
subsections (3), (4), (5), (6), (7), (8), determine place of supply has
(9), (10), (11), (12) and (13) shall be been provided in cases where one
the location of the recipient of of them i.e. location of supplier or
service: location of recipient is outside
PROVIDED that in case the location India. As stated above a supply of
of the recipient of service is not service will be zero rated only
available in the ordinary course of when the recipient is outside India,
business, the place of supply shall place of supply is outside India and

Sec) (Sub-
sec)
be the location of the supplier consideration has been received in
of service. foreign currency. Hence Sec. 10
(3) The place of supply of the becomes very important because
following services shall be the even if the recipient is outside
location where the services are India, if the place of supply is not
actually performed, namely:- outside India it will not be zero
(a) services supplied in respect of rated and IGST shall be payable
goods that are required to be made
physically available by the recipient Intermediary is defined under
of service to the supplier of section 2(13) as intermediary
service, or to a person acting on means a broker, an agent or any
behalf of the supplier of service in other person, by whatever name
order to provide the service: called, who arranges or facilitates
PROVIDED that when such services the supply of a service (hereinafter
are provided from a remote called the main service) or the
location by way of electronic supply of goods, between two or
means, the place of supply shall be more persons, but does not
the location where goods are include a person who supplies the
situated at the time of supply of main service or supplies the goods
service: on his account. As per version 1,
PROVIDED FURTHER that this clause intermediaries of goods
shall not apply in the case of a representing foreign principal's
service supplied in respect of goods were not liable to GST. However,
that are temporarily imported into under current Finance Act, 1994
India for repairs and are they are liable from October 2014.
exported after repairs without As per version 2 they will also be
being put to any use in India, other liable for GST. It may be noted that
than that which is required for such taxing intermediaries is against the
repairs; principles of OECD due to double
(b) services supplied to an taxation as the foreign principal is
individual, represented either as required to pay tax in his home
the recipient of service or a person country under reverse charge as a
acting on behalf of the recipient, receiver of service.
which require the physical presence

Sec) (Sub-
sec)
of the receiver or the person acting
on behalf Generally place of supply will be the
of the recipient, with the supplier place of recipient of service, if it is
for the supply of the service. not available then place of supplier
(4) The place of supply of services of service except of specified
supplied directly in relation to an services as given in subsequent sub-
immovable property, including sections.
services supplied in this regard by
experts and estate This is similar to the default rule
agents, supply of hotel applicable to domestic transactions
accommodation by a hotel, inn,
guest house, club or campsite, No GST on international freight on
by whatever name called, grant of exports provided by shipping
rights to use immovable property, companies to persons located
services for outside India.
carrying out or co-ordination of
construction work, including
architects or interior In following cases place of supply
decorators, shall be the place of service will the place where
where the immovable property is service actually performed:
located or intended to be
located. a) In respect of goods required to be
(5) The place of supply of services made physically available by
supplied by way of admission to, or recipient to supplier. In case
organization of, a cultural, artistic, service is provided from remote
sporting, scientific, educational, or location then place of supply
entertainment would be location of goods
event, or a celebration, conference,b)
fair, exhibition, or similar events, c) In case services supplied to an
and of services individual, where physical
ancillary to such admission, shall be presence of recipient /person
the place where the event is acting on behalf of recipient
actually held.
(6) Where any service referred to in

Sec) (Sub-
sec)
sub-sections (3), (4), or (5) is Drafted on the principle of
supplied at consumption. Hence even if goods
more than one location, including a are sent back outside India, GST
location in the taxable territory, its shall be payable. Only goods
place of supply received for repairs are excluded
shall be the location in the taxable Drafted on the principle of
territory where the greatest consumption. Hence if an
proportion of the service individual coming from outside
is provided. India undertakes a haircut at a
(7) Where the services referred to salon in India, GST shall be
in sub-sections (3), (4), (5) or (6) are payable.
supplied in more than one State,
the place of supply of such services
shall be taken as Place of supply of service
being in each of the States in supplied directly in relation to an
proportion to the value of services immovable property shall be the
so provided in each place where such property is
State as ascertained from the terms located or intended to be located
of the contract or agreement
entered into in this
regard or, in absence of such Event based services place of
contract or agreement, on such supply will be the place where
other reasonable basis as event actually held
may be prescribed in this behalf.
(8) The place of supply of following
services shall be the location of the
supplier of service:- If services referred sub-section 3),
(a) services supplied by a banking (4), (5) or (6) are supplied are
company, or a financial institution, supplied at more than one
or a location including in taxable
non-banking financial company, to territory place of supply would be
account holders; the location where greatest
(b) intermediary services; proportion of service is supplied
(c) services consisting of hiring of

Sec) (Sub-
sec)
means of transport other than If services referred sub-section 3),
aircrafts (4), (5) or (6) are supplied in more
and vessels except yachts, upto a than one State, place of supply of
period of one month. such services shall be taken as in
Explanation.- For the purpose of proportion to the value of
this section, the expression goods services so provided in each State
shall as ascertained from the terms of
include securities as defined in the contract or on such other
sub-section (90) of section 2 of the reasonable basis as may be
CGST prescribed in this behalf.
Act, 2016.
(9) The place of supply of services
of transportation of goods, other Place of supply for following cases
than by will be a place of Supplier:
way of mail or courier, shall be the
place of destination of the goods. a) Banking or financial
(10) The place of supply in respect institute
of a passenger transportation b) Intermediary service
service shall c) Services relating to hiring
be the place where the passenger of means of transport
embarks on the conveyance for a Place of supply of services of
continuous journey. transportation of goods, other
(11) Place of supply of services than by way of mail or courier,
provided on board a conveyance shall be the place of destination
during the of the goods.
course of a passenger transport
operation, including services The place of supply in respect of a
intended to be wholly or passenger transportation service
substantially consumed while on shall be the place where the
board, shall be the first scheduled passenger embarks on the
point of departure of conveyance for a continuous
that conveyance for the journey. journey.
(12) (a) The place of supply of the
online information and database GST shall be applicable on airfare

Sec) (Sub-
sec)
access or for transportation services
retrieval services services shall be provided to persons located
location of recipient of service. outside India boarding from India
(b) For the purposes of this sub-
section, person receiving such First scheduled point of
services shall departure of that conveyance will
be deemed to be located in the be a place of supply for services
taxable territory if any two of the provided on board a conveyance.
following non-contradictory
conditions are satisfied, namely:-
(i) the location of address Place of supply of online
presented by the recipient of information and database access or
service via retrieval services will be the place
internet is in taxable territory; of recipient if
(ii) the credit card or debit card or
store value card or charge card or a) Location of address given by
smart card or any other card by the recipient is in taxable
which the recipient of service territory
settles payment has been issued in b) Credit/debit card or any other
the taxable territory;
cards used for payment has
(iii) the billing address of recipient
been issue in taxable territory
of service is in the taxable territory;
(iv) the internet protocol address of c) Billing address of recipient is
the device used by the recipient of in taxable territory
service is in the taxable territory; d) IP address of device is in
(v) the bank of recipient of service taxable territory
in which the account used for e) Bank of recipient in which
payment is maintained is in the account is used for payment is
taxable territory; in taxable territory
(vi) the country code of the f) Country code of SIM is in
subscriber identity module (SIM)
taxable territory
card used
g) Location of land line.
by the recipient of service is of
taxable territory;

Sec) (Sub-
sec)
(vii) the location of the fixed land A separate provision has been
line through which the service is added for online information and
received by the recipient is in database access or retrieval
taxable territory. services. Merely because the
(13) In order to prevent double address of the recipient is outside
taxation or non-taxation of the India will not be enough to make
supply of a such services zero rated. If any two
service, or for the uniform conditions stated are satisfied, it
application of rules, the Central shall not be treated as export of
Government shall have the service. Online information and
power to notify any description of database access or retrieval
service or circumstances in which services means services whose
the place of supply delivery is mediated by
shall be the place of effective use information technology over the
and enjoyment of a service. internet or an electronic network
and the nature of which renders
their supply essentially automated
and involving minimal human
includes electronic services such as
( a) advertising on the internet; (b)
providing cloud services; (c)
provision of e-books, movie,
intangibles via telecommunication
networks or internet; (d) providing
data or information, retrievable or

otherwise, to any person, in
electronic form through a
computer network; (e) online
supplies of digital content (movies,

Sec) (Sub-
sec)
television shows, music, etc.); (f)
digital data storage; and (g) online
gaming;
One will have to wait for

notification, if any.
CHAPTER-V PAYMENT OF TAX
7 Payment of tax, (1) Every deposit made 11 Payment of tax, interest, (1) Every deposit made towards tax, Section 8A not there in Model
interest, penalty towards tax, interest, penalty and other interest, penalty, fee or any other GST law June 2016
and other penalty, fee or any other amounts amount by a taxable person by
amounts amount by a internet banking or by using Self-assessed tax paid shall consist
taxable person by internet credit/debit cards or National of penalty, interest, tax and frees,
banking or by using Electronic Fund Transfer or Real it means taxpayer shall pay penalty
credit/debit cards or Time Gross Settlement or by any suo moto in case any
National Electronic other mode, subject to such contravention is known to the
Fund Transfer or Real Time conditions and restrictions as may taxpayer
Gross Settlement or by any be prescribed in this behalf, shall be
other mode, subject to such credited to the electronic cash
conditions and restrictions as ledger of such person to be Explanation inserted to clarify tax
may be prescribed in this maintained in the manner as paid by the taxpayer is deemed to
behalf, shall be credited to may be prescribed. have been passed on the recipient
the Explanation: The date of credit to and tax does not includes penalty,
electronic cash ledger of the account of the appropriate interest, fees.
such person to be Government in the
maintained in the manner as authorized bank shall be deemed to
may be be the date of deposit in the
prescribed. electronic cash ledger.
Explanation.- The date of (2) The input tax credit as self-
credit to the account of the assessed in the return of a taxable
appropriate Government in person shall
the be credited to his electronic credit

Sec) (Sub-
sec)
authorized bank shall be ledger, in accordance with section
deemed to be the date of 36 of the CGST Act,
deposit. 2016 to be maintained in the
(2) The input tax credit as manner as may be prescribed.
self-assessed in the return of (3) The amount available in the
a taxable person shall be electronic cash ledger may be used
credited to his electronic for making
credit ledger to be any payment towards tax, interest,
maintained in the manner as penalty, fees or any other amount
may be payable under the
prescribed. provisions of the Act or the rules
(3) The amount available in made thereunder in such manner
the electronic cash ledger and subject to such
may be used for making any conditions and within such time as
payment towards tax, may be prescribed.
interest, penalty, fees or any (4) The amount available in the
other amount payable under electronic credit ledger may be
the used for making
provisions of the Act or the any payment towards output tax
rules made thereunder in payable under the provisions of the
such manner and subject to Act or the rules
such made thereunder in such manner
conditions and within such and subject to such conditions and
time as may be prescribed. within such time as
(4) The amount available in may be prescribed.
the electronic credit ledger (5)(a) The amount of input tax
may be used for making any credit on account of IGST available
payment towards tax in the
payable under the provisions electronic credit ledger shall first be
of the Act or the rules made utilized towards payment of IGST
thereunder in such manner and
and subject to such the amount remaining, if any, may
conditions and within such be utilized towards the payment of
time as may CGST and SGST, in that order.

Sec) (Sub-
sec)
be prescribed. (b) The amount of input tax credit
(5)(a) The amount of input on account of CGST available in the
tax credit on account of IGST electronic credit ledger shall first be
available in the electronic utilized towards payment of CGST
credit ledger shall first be and
utilized towards payment of the amount remaining, if any, may
IGST and the amount be utilized towards the payment of
remaining, IGST.
if any, may be utilized (c) The amount of input tax credit
towards the payment of on account of SGST available in the
CGST and SGST, in that electronic credit ledger shall first be
order. utilized towards payment of SGST
(b) The amount of input tax and
credit on account of CGST the amount remaining, if any, may
available in the electronic be utilized towards the payment of
credit IGST.
ledger shall first be utilized (6) The balance in the cash or credit
towards payment of CGST ledger after payment of tax,
and the amount remaining, if interest,
any, penalty, fee or any other amount
may be utilized towards the payable under the Act or the rules
payment of IGST. made thereunder
(c) The amount of input tax may be refunded in accordance
credit on account of SGST with the provisions of section 48 of
available in the electronic the CGST Act, 2016
credit ledger shall first be and the amount collected as IGST
utilized towards payment of shall stand reduced to that extent.
SGST and the amount (7) All liabilities of a taxable person
remaining, under this Act shall be recorded
if any, may be utilized and
towards the payment of maintained in an electronic liability
IGST. register as may be prescribed.
(6) The balance in the cash or (8) Every taxable person shall
credit ledger after payment discharge his tax and other dues

Sec) (Sub-
sec)
of tax, interest, penalty, under this Act
fee or any other amount or the rules made thereunder in the
payable under the Act or the following order:
rules made thereunder may (a) self-assessed tax, and other
be dues related to returns of previous
refunded in accordance with tax periods;
the provisions of section 38 (b) self-assessed tax, and other
of the CGST Act and the dues related to the return of the
amount collected as IGST current tax period;
shall stand reduced to that (c) any other amount payable under
extent. the Act or the rules made
(7) All liabilities of a taxable thereunder
person under this Act shall including the demand determined
be recorded and maintained under section 66 and 67 of the
in an electronic register as CGST
may be prescribed. Act, 2016.
(8) Every taxable person shall (9) Every person who has paid the
discharge his tax and other tax on goods and/or services under
dues under this Act or the this Act shall,
rules made thereunder in the unless the contrary is proved by
following order: him, be deemed to have passed on
(a) self-assessed tax, and the full incidence of
other dues related to returns such tax to the recipient of such
of previous tax periods; goods and/or services.
(b) self-assessed tax, and Explanation: For the purposes of
other dues related to the this section, the expression tax
return of the current tax dues means the tax
period; payable under this Act and does not
(c) any other amount include interest, fee and penalty.
payable under the Act or the
rules made thereunder
including
the demand determined
under section 51 of the CGST

Sec) (Sub-
sec)
Act.
(9) Every person who has
paid the tax on goods and/or
services under this Act shall,
unless the contrary is proved
by him, be deemed to have
passed on the full incidence
of
such tax to the recipient of
such goods and/or services.
New Clause 12 Special provision for (1) On supply of online information Special provision for online
payment of tax by a and database access or retrieval information and database access
supplier of online services by any person located in a or retrieval services has been
information and non-taxable territory and received inserted.
database access or by non-taxable online recipient
retrieval services located the supplier of service located in a Supplier of this service located
outside India to specified non-taxable territory shall be the outside India is required to pay
person in the taxable person liable for paying IGST: the IGST.
territory
PROVIDED that in case the supply Provision created to tax supplies
of online information and database made to non-taxable recipients
access or retrieval services by any like Government, a local authority,
person located in a non-taxable a governmental authority, an
territory and received by individual or any person not
nontaxable online recipient, an registered under section 23 of the
intermediary located in the non- CGST Act, 2016 receiving online
taxable territory, who arranges or information and database access
facilitates provision of such service, or retrieval services in relation to
shall be deemed to be receiving any purpose other than
such services from the service commerce, industry or any other
provider in non-taxable territory business or profession, and
and supplying such services to located in taxable territory
the non-taxable online recipient
except when such intermediary Beneficial provision

Sec) (Sub-
sec)
satisfies all the following
conditions, namely :-
(a) the invoice or customers bill or
receipt issued or made available by
such
intermediary taking part in the
supply clearly identifies the service
in
question and its supplier in non-
taxable territory;
(b) the intermediary involved in the
supply does not authorise the
charge to
the customer or take part in its
charge i.e. intermediary neither
collects or
processes payment in any manner
nor is responsible for the payment
between the non-assesse online
recipient and the supplier of such
services;
(c) the intermediary involved in the
supply does not authorise delivery;
(d) the general terms and
conditions of the supply are not set
by the
intermediary involved in the supply
but by the service provider.
(2) The supplier of online
information and database access or
retrieval services
referred in sub-section (1) shall, for
payment of IGST, take a single
registration under a

Sec) (Sub-
sec)
Simplified Registration Scheme as
may be prescribed:
PROVIDED that any person located
in taxable territory representing
such supplier
for any purpose in the taxable
territory shall take a registration
and pay IGST on behalf
of the supplier:
PROVIDED FURTHER that if such
supplier does not have a physical
presence or
does not have a representative for
any purpose in the taxable
territory, he may appoint
a person in the taxable territory for
the purpose of paying IGST and
such person shall be
liable for paying IGST.
CHAPTER VI : INPUT TAX CREDIT
8(1) Claim of input tax (1) Every registered taxable 13 Claim of input tax credit, (1) Every registered taxable person The provision has been made so as
credit, person shall, subject to such provisional acceptance, shall, subject to such conditions and to allow reduction in output tax
provisional conditions and restrictions matching, reversal and restrictions as may be prescribed in liability on subsequent matching
acceptance, as may be prescribed in this reclaim of input tax this behalf, be entitled to take either reclaiming the credit or
matching, behalf, be entitled to take credit or reduction in credit of input tax, as reduction of tax liability.
reversal and credit of input tax, as output tax liability self-assessed, in his return and such
reclaim thereof selfassessed, amount shall be credited, on a
in his return and such provisional basis, to
amount shall be credited, on his electronic credit ledger to be
a provisional basis, to his maintained in the manner as may
electronic credit ledger to be be prescribed.
maintained in the manner as (2) The credit referred to in sub-
may be prescribed. section (1) shall be utilized only for

Sec) (Sub-
sec)
(2) The provisions of section payment of self-assessed output tax
29 of the CGST Act, 2016 liability as per the return referred
relating to matching, reversal to in sub-section (1).
and (3) The provisions of section 37 and
reclaim of input tax credit 38 of the CGST Act, 2016 relating to
shall apply mutatis mutandis matching, reversal and reclaim of
to the matching, reversal and input tax credit or reduction in
reclaim of input tax credit output tax liability shall
under this section. apply mutatis mutandis to the
matching, reversal and reclaim of
input tax credit or reduction in
output tax liability under this
section.
9 Transfer of input (1) On utilization of input tax 14 Transfer of input tax (1) On utilization of input tax credit No Change
tax credit credit availed under this Act credit availed under this Act for payment
for payment of tax dues of tax dues under the CGST Act as
under the CGST Act as per per sub-section (5) of section 11,
sub-section (5) of section 7, the amount collected as
the amount collected as IGST IGST shall stand reduced by an
shall stand reduced by an amount equal to the credit so
amount equal to the credit utilized and the Central
so utilized and the Central Government shall transfer an
Government shall transfer an amount equal to the amount so
amount equal to the amount reduced from the IGST
so reduced from the IGST account to the CGST account in the
account to the CGST account manner and time as may be
in the manner and time as prescribed.
may be prescribed. (2) On utilization of input tax credit
(2) On utilization of input tax availed under this Act for payment
credit availed under this Act of tax dues under the SGST Act as
for payment of tax dues per sub-section (5) of section 11,
under the SGST Act as per the amount collected as IGST shall
sub-section (5) of section 7, stand reduced by an amount equal
the amount collected as IGST to the credit so utilized and shall be

Sec) (Sub-
sec)
shall stand reduced by an apportioned to the appropriate
amount equal to the credit State government and the Central
so utilized and the Central Government shall transfer the
Government shall transfer an amount so apportioned to account
amount equal to the amount of the appropriate State
so reduced from the IGST Government in the manner and
account to the SGST account time as may be prescribed.
of the appropriate State
Government in the manner
and time as may be
prescribed.
CHAPTER- VII : APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
10 Apportionment (1) Out of the IGST paid to 15 Apportionment of tax (1) Out of the IGST paid to the
of tax collected the Central Government in collected under the Central Government in respect of
under the Act respect of inter-State supply Act and settlement of inter-State supply of goods and/or
and settlement of goods and/or services to funds services to an unregistered person
of funds an unregistered person or to or to a taxable person paying
a taxable person paying tax tax under section 9 of the CGST Act,
under section 8 of the CGST 2016 the amount of tax calculated
Act, the amount of tax at the rate equivalent to the CGST
calculated at the rate on similar intra-state supply shall
equivalent to the CGST on be apportioned to the Central
similar intra-state supply Government.
shall be apportioned to the (2) Out of the IGST paid to the
Central Government. Central Government in respect of
(2) Out of the IGST paid to inter-State supply of goods and/or
the Central Government in services where such taxable person
respect of inter-State supply is not eligible for input tax
of goods and/or services credit, the amount of tax calculated
made in a year to a at the rate equivalent to the CGST
registered taxable person, on similar intra- State supply shall
where such taxable person is be apportioned to the Central
either not eligible for input Government.

Sec) (Sub-
sec)
tax credit or where he does (3) Out of the IGST paid to the
not avail of the said credit Central Government in respect of
within the specified period inter-State supply of goods and/or
and thus remains in the IGST services made in a year to a
account after expiry of the registered taxable person, where
due date for filing of annual he does not avail of the said credit
return for such year in which within the specified period and thus
the supply was made, the remains in the IGST account after
amount of tax calculated at expiry of the due date for filing of
the rate equivalent to the annual return for such year in
CGST on similar intra-state which the supply was made, the
supply shall be apportioned amount of tax calculated at the rate
to the Central Government. equivalent to the CGST on
(3) Out of the IGST paid to similar intra-State supply shall be
the Central Government in apportioned to the Central
respect of import of goods Government.
and / or services by an (4) Out of the IGST paid to the
unregistered person or by a Central Government in respect of
taxable person paying tax import of goods and / or services by
under section 8 of the CGST an unregistered person or by a
Act, the amount of tax taxable person paying tax
calculated at the rate under section 9 of the CGST Act,
equivalent to the CGST on 2016 the amount of tax calculated
similar intra-state supply at the rate equivalent to the CGST
shall be apportioned to the on similar intra-State supply shall
Central Government. be apportioned to the Central
(4) Out of the IGST paid to Government.
the Central Government in (5) Out of the IGST paid to the
respect of import of goods Central Government in respect of
and import of
/ or services made in a year goods and / or services, where the
by a registered taxable such taxable person is not eligible
person, where the such for input tax
taxable credit, the amount of tax calculated

Sec) (Sub-
sec)
person is either not eligible at the rate equivalent to the CGST
for input tax credit or where on similar intra-
he does not avail of the said State supply shall be apportioned
credit within the specified to the Central Government.
period and thus remains in (6) Out of the IGST paid to the
the IGST account after expiry Central Government in respect of
of import of
the due date for filing of goods and / or services made in a
annual return for such year year by a registered taxable person,
in which the supply was where he does
received, not avail of the said credit within
the amount of tax calculated the specified period and thus
at the rate equivalent to the remains in the IGST
CGST on similar intra-state account after expiry of the due date
supply shall be apportioned for filing of annual return for such
to the Central Government. year in which the
(5) The balance amount of supply was received, the amount of
tax remaining in the IGST tax calculated at the rate equivalent
account in respect of the to the CGST on
supply similar intra-State supply shall be
for which an apportionment apportioned to the Central
to the Central Government Government.
has been done under sub- (7) The balance amount of tax
section remaining in the IGST account in
(1), (2) or (3) shall be respect of the
apportioned, in the manner supply for which an apportionment
and time as may be to the Central Government has
prescribed, to the been done under subsection
State where such supply (1), (2), (3), (4), (5) or (6) shall be
takes place as per section9 5 apportioned to the State where
or 6. such supply
(6) The provisions of sub- takes place as per sections 7, 8, 9 or
sections (1), (2), (3), (4) and 10:
(5) relating to apportionment PROVIDED that where the place of

Sec) (Sub-
sec)
of such supply made by any taxable
tax shall mutatis mutandis person
apply to the apportionment cannot be determined separately,
of interest and penalty the said balance amount shall be
realized in apportioned to each
connection with the tax so of the States to which such taxable
apportioned. person has made supplies during
(7) Where an amount has the financial year in
been apportioned to the the proportion of the total supplies
Central Government or a made to each of such States:
State PROVIDED FURTHER that where the
Government under sub- taxable person making such
sections (1), (2), (3), (4), (5) supplies cannot
and (6), the amount be determined, the said balance
collected as amount shall be apportioned to all
IGST shall stand reduced by States as per the
an amount equal to the order made by the President under
amount so apportioned and clause (2) of Article 270.
the (8) The provisions of sub-sections
Central Government shall (1), (2), (3), (4), (5), (6) and (7)
transfer to the CGST account relating
an amount equal to an to apportionment of tax shall
amount mutatis mutandis apply to the
apportioned to the Central apportionment of interest,
Government and shall penalty and compounding amount
transfer to the SGST account realized in connection with the tax
of the so apportioned.
State an amount equal to an (9) Where an amount has been
amount apportioned to that apportioned to the Central
State, in the manner and Government or a
time State Government under sub-
as may be prescribed. sections (1), (2), (3), (4), (5), (6), (7)
and (8) the amount
collected as IGST shall stand

Sec) (Sub-
sec)
reduced by an amount equal to the
amount so apportioned
and the Central Government shall
transfer to the CGST account an
amount equal to an
amount apportioned to the Central
Government and shall transfer to
the SGST account of the State an
amount equal to an amount
apportioned to that State, in the
manner and time as may be
prescribed.
(10) Any IGST amount apportioned
to a State, if subsequently found
refundable to any person and
refunded to such person, shall be
reduced from the amount
apportioned to such State under
this section or otherwise, in the
manner and time as may be
prescribed.
Chapter VIII : ZERO RATED SUPPLY
2(42) exempt supply (42) exempt supply means 2(42) Deleted Deleted Claused
supply of any goods and/or
services which are not
taxable under this Act and
includes such supply of
goods and/or services which
are
specified in Schedule . . . of
the Act or which may be
exempt from tax under
section 10;

Sec) (Sub-
sec)
New Clause 16 Zero Rated Supply (1) zero rated supply means any Zero rated supply has been
of the following taxable supply of defined:
goods a) Export of goods and
and/or services, namely - services
(a) export of goods and/or services; b) Supply of goods and
or services to SEZ
(b) supply of goods and/or services Input tax credit is available for
to a SEZ developer or an SEZ unit. zero rated supply Goods or
(2) Subject to provisions of sub- services can be exported under
section (3) of section 17 of the bond and refund of ITC can be
CGST Act, 2016, claimed
credit of input tax may be availed
for making zero-rated supplies, Anomaly related to exports as well
notwithstanding that as SEZ supplies have been
such supply may be an exempt corrected and two options akin to
supply. current law have been provided to
(3) A registered taxable person claim refund.
exporting goods or services shall be
eligible to
claim refund under one of the This is beneficial change as under
following two options, namely - present VAT laws, in many State's
(a) a registered taxable person may input tax credit is not available in
export goods or services under case of export of exempted goods.
bond, As per version 2 credit shall be
subject to such conditions, available. Only exception is a
safeguards and procedure as may banking company or a financial
be institution which exercises option
prescribed in this regard, without to avail ad-hoc 50% credit under
payment of IGST and claim refund section 16(3) of CGST Law
of unutilized input tax credit in
accordance with provisions of
section 48 of the CGST Act, 2016
read with rules made thereunder;
(b) a registered taxable person may

Sec) (Sub-
sec)
export goods or services, subject to
such conditions, safeguards and
procedure as may be prescribed in
this regard, on payment of IGST and
claim refund of IGST paid on goods
and services exported in
accordance with provisions of
section 48 of the
CGST Act, 2016 read with rules
made thereunder.
(4) The SEZ developer or SEZ unit
receiving zero rated supply
specified in clause
(a) of sub-section (1) shall be
eligible, subject to the conditions,
safeguards and
procedure as may be prescribed in
this regard, to claim refund of IGST
paid by the
registered taxable person on such
supply.
CHAPTER IX : MISCELLANEOUS
27 Application of The provisions relating to 17 Application of certain The provisions relating to Provisions of CGST Act w.r.t.
certain registration, valuation, time provisions of the CGST registration, valuation, time of Distribution under ISD, Job work
provisions of of supply of goods, time of Act, 20176 supply of goods, time of has correctly made applicable for
the CGST Act, supply of services, change in supply of services, change in rate of IGST also.
2016 rate of tax in respect of tax in respect of supply of goods or
supply of services, services, input
exemption from tax credit and utilization thereof,
payment of tax, input tax distribution of input tax credit by an
credit and utilization thereof, Input Service
accounts and records, Distributor, job work, accounts and
payment, return, audit, records, payment, tax deduction at

Sec) (Sub-
sec)
assessment, adjudication, source, return,
demands, refunds, interest, tax collection at source, audit,
recovery of tax, offences and assessment, adjudication,
penalties, inspection, search demands, refunds, interest,
and seizure, prosecution and recovery of tax, offences and
power to arrest, appeals, penalties, inspection, search and
review, advance ruling and seizure, prosecution and
compounding shall apply, so power to arrest, appeals, review,
far as may be, in relation to advance ruling and compounding
the levy of tax under this Act shall apply, so far as
as they apply in relation to may be, in relation to the levy of tax
levy of tax under the CGST under this Act as they apply in
Act, 2016. relation to levy of
tax under the CGST Act, 2016:
Provided that in the case of tax
deduction at source, the deductor
shall deduct tax
at the rate of two percent from the
payment made or credited to the
supplier:
Provided further that in the case of
tax collection at source, the
operator shall
collect tax at the rate of two
percent of the value of net
supplies.
28 Power to make (1) The Central Government 18 Power to make rules (1) The Central Government may, No Change
rules may, on the on the recommendation of the
recommendation of the Council, by notification, make rules
Council, by for carrying out the purposes of this
notification, make rules for Act.
carrying out the purposes of (2) In particular and without
this Act. prejudice to the generality of the
(2) In particular and without foregoing power, such rules may

Sec) (Sub-
sec)
prejudice to the generality of (a) provide for settlement of cases
the foregoing power, such in accordance with Chapter XII of
rules may this Act;
(i) provide for settlement of (b) provide for all or any of the
cases in accordance with matters which under any provision
Chapter VIIA of this Act; of this Act are required to be
(ii) provide for all or any of prescribed or to be provided for by
the matters which under any rules.
provision of this Act are
required to be prescribed or
to be provided for by rules.
53 Tax wrongfully A taxable person who has 19 Tax wrongfully collected (1) A taxable person who has paid Very good provision w.r.t. wrong
collected and paid IGST on a transaction and deposited with the IGST on a supply considered by him payment of IGST instead of CSGT
deposited with considered by him to be an Central or a State to be an inter-state supply, but /SGST, no interest will be payable
the Central or a interstate Government which is subsequently found to be for short payment of CGST & SGST.
State supply, but which is an intra-State supply, shall, be
Government subsequently held to be an granted refund of the amount of
intra-state supply, shall, IGST so paid in such manner and
upon subject to such
payment of CGST and SGST conditions as may be prescribed.
in the appropriate State, be (2) A taxable person who has paid
allowed to take the amount CGST / SGST on a transaction
of considered by
IGST so paid as refund him to be an intra-State supply, but
subject to the provisions of which is subsequently found to be
section 38 of the CGST Act, an inter-State
2016 and supply, shall not be required to
such other conditions as may pay any interest on the amount of
be prescribed. IGST payable
54 Recovery of tax (1) Where any amount Deleted
payable by a person to the
credit of the Central or a
State
Government under any of

Sec) (Sub-
sec)
the provisions of this Act or
of the rules made
thereunder is
not paid, the proper officer
shall proceed to recover the
amount by one or more of
the
modes mentioned below: -
(a) the proper officer may
deduct or may require any
other specified officer to
deduct
the amount so payable from
any money owing to such
person which may be under
the
control of the proper officer
or such other specified
officer.
(b) the proper officer may
recover or may require any
other specified officer to
recover
the amount so payable by
detaining and selling any
goods belonging to such
person
which are under the control
of the proper officer or such
other specified officer.
(c) (i) the proper officer may,
by a notice in writing, require
any other person from
whom money is due or may

Sec) (Sub-
sec)
become due to such person
or who holds or may
subsequently hold money for
or on account of such
person, to pay to the credit
of the
Central or a State
Government either forthwith
upon the money becoming
due or being
held, or at or within the time
specified in the notice not
being before the money
becomes
due or is held, so much of
the money as is sufficient to
pay the amount due from
such
person or the whole of the
money when it is equal to or
less than that amount;
(ii) every person to whom
the notice is issued under
this section shall be bound to
comply with such notice, and
in particular, where any such
notice is issued to a post
office, banking company or
an insurer, it shall not be
necessary to produce any
pass
book, deposit receipt, policy
or any other document for
the purpose of any entry,

Sec) (Sub-
sec)
endorsement or the like
being made before payment
is made, notwithstanding any
rule,
practice or requirement to
the contrary;
New Clause 20 Refund of IGST paid on (1) The IGST paid on any supply of Very welcome provision. Now any
supply of goods to goods to outbound tourist shall be foreign tourist and procuring the
outbound tourist refunded, in the manner and goods and taking away those
subject to such conditions and goods outside India then GST paid
safeguards as may be prescribed, if on the same will be refunded.
such goods are taken out of India.
(2) The refund under sub-section Tourist has been defined under
(1) shall be allowed only on such section 2(27) as tourist means a
supply of goods that is procured person not normally resident in
from a registered taxable person India, who enters India for a stay
who satisfies the conditions and of not more than six months for
complies with the requirement, legitimate non-immigrant
including relating to issue of invoice purposes. India will be in the list of
in the prescribed very few nations who provide
manner. refund of indirect taxes to tourists.
29 Interest on (1) Every person liable to pay Deleted Interest will also be liable for
delayed tax in accordance with the undue / excess reduction of
payment of tax provisions of this Act or rules output tax liability.
made there under, who fails
to pay the tax or any part This is the most beneficial change
thereof to the account of the that the industry had expected.
Central Government within Everyone was worried that if
the period prescribed, shall, payment of wrong tax is made,
on his own, for the period for one will have to pay the interest
which the tax or any part on correct tax due to delay in
thereof remains unpaid, pay payment. Further when one claims
interest at such rate as may refund under normal refund
be provisions, limitation of two years

Sec) (Sub-
sec)
notified, on the would have applied. In version 2 it
recommendation of the is provided that no interest shall
Council, by the Central be payable on payment of correct
Government. tax subsequently. Also refund
(2) The interest under sub- mechanism shall be separately
section (1) shall be calculated provided in such cases
from the first day such tax
was
due to be paid.
(3) In case a taxable person
makes an undue or excess
claim of input tax credit
under
sub-section (10) of section 29
of the CGST Act, he shall be
liable to pay interest on such
undue or excess claim at the
prescribed rate for the
period computed in the
manner
prescribed.
CHAPTER X : TRANSITIONAL PROVISIONS
31 Import of Notwithstanding anything 21 Import of services or Notwithstanding anything
services or inter- contained in section 12 and inter-State supply of contained in section 12 and 13 of
state supply of 13 of the CGST Act, import of goods and/or services the CGST Act, 2016
goods and/or services or inter-state supply made import of services or inter-State
services made of goods and/or services on or after the supply of goods and/or services
on or after the made after the appointed appointed day made after the
appointed day day appointed day shall be liable to tax
shall be liable to tax under under the provisions of this Act
the provisions of this Act regardless of whether
regardless of whether the the transactions for such import of
transactions for such import services or inter-state supply had
of services or inter-state been initiated

Sec) (Sub-
sec)
supply had been initiated before the appointed day:
before PROVIDED that if the tax on such
the appointed day: import or inter-State supply had
Provided that if the tax on been paid in
such import or inter-state full under the earlier law, no tax
supply had been paid in full shall be payable on such import or
under inter-state supply
the earlier law, no tax shall under this Act:
be payable on such import or PROVIDED FURTHER that if the tax
inter-state supply under this on such import of services had
Act: been paid in
Provided further that if the part under the earlier law, balance
tax on such import of amount of tax shall be payable on
services had been paid in such import or
part under the inter-state supply under this Act.
earlier law, balance amount Explanation: For the purpose of this
of tax shall be payable on section, a transaction shall be
such import or inter-state deemed to
supply have been initiated before the
under this Act. appointed day if either the invoice
Explanation.- For the relating to such supply
purpose of this section, a or payment, either in full or in part,
transaction shall be deemed has been received or made before
to have been the appointed
initiated before the day.
appointed day if either the
invoice relating to such
supply or
payment, either in full or in
part, has been received or
made before the appointed
day.
CHAPTER- XI : ADMINISTRATION

Sec) (Sub-
sec)
32 Classes of (1) There shall be the 22 Classes of officers under (1) There shall be the following No Change
officers under following classes of officers the Integrated Goods & classes of officers under the
the Integrated under the Integrated Goods Services Tax Act, 2017 6 Integrated Goods
Goods & and and Services Tax Act, 2016 namely;
Services Tax Act, Services Tax Act, 2016 (a) Principal Chief Commissioners of
2016 namely; IGST or
(a) Principal Chief Principal Directors General of IGST,
Commissioners of IGST or (b) Chief Commissioners of IGST or
Principal Directors General of Directors General of IGST,
IGST, (c) Principal Commissioners of IGST
(b) Chief Commissioners of or
IGST or Directors General of Principal Additional Directors
IGST, General of IGST,
(c) Principal Commissioners (d) Commissioners of IGST or
of IGST or Additional Directors General of
Principal Additional Directors IGST,
General of IGST, (e) Additional Commissioners of
(d) Commissioners of IGST or IGST or
Additional Directors General Additional Directors of IGST,
of IGST, (f) Joint Commissioners of IGST or
(e) First Appellate Authority Joint Directors of IGST,
(f) Additional Commissioners (g) Deputy Commissioners of IGST
of IGST or or
Additional Directors of IGST, Deputy Directors of IGST,
(g) Joint Commissioners of (h) Assistant Commissioners of IGST
IGST or Joint Directors of or
IGST, Assistant Directors of IGST, and
(h) Deputy Commissioners of (i) such other class of officers as
IGST or may be appointed for the purposes
Deputy Directors of IGST, of
(i) Assistant Commissioners this Act.
of IGST or
Assistant Directors of IGST,
and (j) such other class of

Sec) (Sub-
sec)
officers as may be appointed
for the purposes of this Act.
33 Appointment of (1) The Board may appoint 23 Appointment of officers (1) The Board may appoint such No Change
officers under such persons as it may think under the Integrated persons as it may think fit to be
the Integrated fit to be officers under the Goods and Services Tax officers under
Goods and Integrated Goods and Act, 2016 the Integrated Goods and Services
Services Tax Services Tax Act, 2016. Tax Act, 2016.
Act, 2016 (2) Without prejudice to the (2) Without prejudice to the
provisions of sub-section (1), provisions of sub-section (1), the
the Board may authorize a Board
Principal Chief may authorize a Principal Chief
Commissioner/Chief Commissioner/Chief Commissioner
Commissioner of Central of Central Goods and
Goods and Services Tax or a Services Tax or a Principal
Principal Commissioner/Commissioner of
Commissioner/Commissioner Central Goods and Services
of Central Goods and Tax or an Additional/Joint or
Services Tax or an Deputy/Assistant Commissioner of
Additional/Joint or Central Goods and
Deputy/Assistant Service Tax to appoint officers of
Commissioner of Central Integrated Goods and Services Tax
Goods and Service Tax to below the rank of
appoint officers of Integrated Assistant Commissioner of
Goods and Services Tax Integrated Goods and Services Tax
below the rank of Assistant Act, 2016.
Commissioner of Integrated
Goods and Services Tax Act,
2016.
New Clause 24 Appointment of Officers The officers appointed under the New Clause
of SGST as proper officer SGST Acts shall, to such extent and
in certain circumstances subject to such conditions, as may
be prescribed in the rules made in
this behalf, be the proper officers
for the purposes of sections

Sec) (Sub-
sec)
(..) of this Act.

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IGST : THE INTEGRATED GOODS & SERVICES TAX ACT, 2017

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CHAPTER-V PAYMENT OF TAX

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