UNIT-2 GST ACTS

1|GST ACTS

UNIT-2
GST ACTS
CGST ACT, 2017
SALIENT FEATURES OF CGST ACT, 2017
1. CGST will be levied on intra state supply of Goods and Services.
2. It spends Input Tax Credit base by ensuring their availability of taxes paid on supply of
Goods and Services.
3. CGST allows Self-Assessment to taxpayers on taxes payable by them.
4. CGST has provisions for levying GST penalties and fines in case of Contravention made
by the taxpayer.
5. For consumers, CGST allows a reduction of tax burden on the various goods and
services.
6. To provide recovery of arrears of tax by using various modes such as sale of goods and
immovable, movable properties of defaulting taxpayers.
7. It provides power of inspection, search and arrest to the officers.

IGST ACT, 2017

SALIENT FEATURES OF IGST ACT, 2017
1. IGST will be levied on Interstate supply of Goods and Services.
2. There will be a uniform (single) IGST rate across the country.
3. IGST will be shared by CGST and IGST.
4. No requirement of pay tax Real/Actual blockage funds for inter sate seller or buyer.
5. IGST provides for levy of tax on import of services or Reverse charge basis.
6. IGST provides payment of tax to supplier through online modes.
7. It provides detailed provision for determining the place of supply in relation to goods
and services.
8. It provides for determination of the nature of the supply as it is an interstate supply or
intrastate supply.

TAXABLE PERSON
A person who carries on any business at any place in India and registered under the GST
ACT.

What is Supply?
Supply includes
Sales, transfer, exchange, license, lease, disposal, etc. If a person undertakes these
transactions during the course of business for consideration.

 There are 3 types of supply such as

I. Time Supply
II. Place Supply
III. Value Supply
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 Time Supply
Time supply means, it is a time when goods/services are considered to be supplied. The
seller knows the time and it helps to identify the due date for payment of taxes.
 Place Supply
Place of supply of goods under GST defines whether the transaction will be counted as
interstate or intrastate, and accordingly, levy of CGST, IGST and SGST will be determined.
 Value Supply
Value of supply is most important because GST will be calculated on the value of sale. The
value is the price which is actually paid or payable for the supply of goods/services between
two parties.

Scope of supply
1. Section 7 of the CGST ACT, 2017 deals with the provisions relating to scope of supply.
2. Supply should be of goods or services. Supply of anything other than goods and services
like money, securities etc, are does not attract GST.
3. Supply should be made for a consideration.
4. Supply should be made in the course of business or Achieve its goal (furtherance of
business).

 COMPOSITION SCHEME
The composition scheme under the CGST ACT is a simple tax scheme designed for Small
Businesses. A taxpayer whose turnover is below ₹1.5 crores can opt for composition
scheme. However in case of North Eastern states the limit is ₹75 lakhs.

 INPUT TAX CREDIT

‘ITC’ means the GST paid by a taxable person on any purchase of goods or services or both,
that are used or will be reduced from the GST payable on the sales made by the taxable
person (for business purpose) only after fulfilling some conditions.

LEVY AND COLLECTION OF IGST

1. Section 5 of the IGST ACT provides the provisions relating to Levy and Collection of IGST.
2. IGST will be levied on all interstate supply of goods and services or both.
3. Such tax shall be paid the specified taxable person.
4. There will be no IGST on the supply of Alcoholic liquor for human consumption.
5. Such tax shall be levied at the rate not exceeding 40% as notified by Central govt.
6. It shall be levied on the value determined under Section 15 of the CGST ACT, 2017.
7. It shall be levied and collected, on goods imported into India.
8. IGST on the supply of petroleum products shall be levied from the date notified by govt.

EXEMPTION CATEGORIES OF IGST

1. Temporary import of Scientific Equipment.
2. Goods imported by political missions.
3. Specified goods imported for display or use at Special Events.
4. Import by charitable organization as a gift.
5. For the Importation of Advertising materials.
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6. Import of Defense and Internal security forces.

7. Import of Research Equipment to Institutions.
8. On Re-exporting film equipment from another country.
9. On Dead person’s personal and household effects.
10. Import of educational science materials.

TAX COLLECTED AT SOURCE (TCS)

TCS is an additional amount collected as tax by a seller of specified goods from the buyer at
the time of sale, over and above the sale amount and send to govt.