Day workshop

20TH JAN. 2020 FROM 9-30 TO 4.45

21ST JAN. 2020 FROM 9.30 TO 3.30

TEA BREAKS- 11.30 TO 11.45 & 3.30 TO 3.45

LUNCH BREAK- 1.30 TO 2.30
 How To Read &
Interpret GST Law
SHRIKANT M. SHALIGRAM
DY. COMMR. OF STATE TAX [RETD],
SHALIGRAMSMAILBOX@GMAIL.COM
9029015134
 ही कार्यशाळा का ?
Why This Workshop ?
 Taxation Laws are more dynamic than other laws.
 GST is even more dynamic than other taxation laws
 Refresher Training is not possible every time a law is amended
 Instead,if we acquire skills to read & interpret a law, refresher trainings
may not required
 Anyone can read & interpret a Law ,if he/she knows the language i.e.
English and has some logic sense
 You need not be a Law graduate to interpret Law.
 ही कार्यशाळा का ?
Why This Workshop ?
 Law is not really boring, as it is made out to be
 There can be lot of funny & interesting situations in law, too
 Write the following sentence two times without punctuation marks:
 Judge said the accused is guilty.
अरे बाप रे.... कशी सांगड घालू
 Constitution
 Act
 Rules
 Forms
 Notifications
 Circulars
 Judgments
 Tribunal

 Bombay High Court

 Supreme Court
 Other High Courts
 Advance Rulings
 Constitution

Both Centre
Centre States
& States

Act Act

Rules Forms Notifications Rules Notifications Forms

Taxation Laws & Indian Constitution

 Constitution is said to be “mother of all laws”

 Source to make any Law in India is in Constitution
 Schedule Seven {list One, Two, Three} OR
 Relevant article in Constitution
Source of Taxation Laws in Constitution
Tax Source
VAT Schedule Seven List II, Entry 54
Central Sales Tax Schedule Seven List II, Entry 92A
Profession tax Schedule Seven List II, Entry 60
Luxury Tax Schedule Seven List II, Entry 62
Entry Tax [on Motor vehicles & specified goods] Schedule Seven List II, Entry 52
Tax on consumption and sale of electricity Schedule Seven List II, Entry 53
Sugarcane Purchase Tax Schedule Seven List II, Entry 54
Entertainment Tax Schedule Seven List II, Entry 62
State Excise duty on liquor Schedule Seven List II, Entry 51
Central Excise Schedule Seven List I, Entry 84
Service Tax Schedule Seven List I, Entry 92C
Customs Duty Schedule Seven List I, Entry 83
 VAT & Constitution
Schedule Seven, List II, Entry 54

 Before 1st July 2017-Taxes on the sale or purchase of goods other than
newspapers, subject to the provisions of entry 92A of List I.
 From 1st July 2017- “Taxes on the sale of petroleum crude, high speed
diesel, motor spirit (commonly known as “petrol”), natural gas, aviation
turbine fuel and alcoholic liquor for human consumption, but not
including sale in the course of inter-state trade or commerce or sale in
the course of international trade or commerce of such goods
 Central Sales Tax & Constitution
Schedule Seven, List I, Entry 92A

 Before 1st July 2017-Taxes on the sale or purchase of goods other than
newspapers, where such sale or purchase takes place in the course of
inter-State trade or commerce.
 From 1st July 2017- Entry 92A continues without amendment.
 But CST Act amended & now definition of “goods” contains only six
goods
 Entry Tax & Constitution
Schedule Seven List II, Entry 52

 Before 1st July 2017- Taxes on the entry of goods into a local area
for consumption, use or sale therein.
 Entry Tax on specified goods i.e. petroleum products, AC, tiles etc. was
levied under this entry
 Octroi & Local Body Tax [LBT] was also levied under this entry
 From 1st July 2017-Entry 52 deleted
 Sales Tax on Electricity
Schedule Seven List II, Entry 53

 Before 1st July 2017-Taxes on the consumption or sale of

electricity.
 From 1st July 2017-Tax continues.
 Entertainment Tax, Luxury Tax
& Constitution
Schedule Seven, List II, Entry 62

 Before 1st July 2017-Taxes on luxuries, including taxes on entertainments,

amusements, betting and gambling.
 From 1st July 2017-Taxes on entertainments and amusements to the extent
levied and collected by a Panchayat or a Municipality or a Regional
Council or a District Council
 Profession Tax & Constitution
Sch. Seven, List II, Entry 60

 Before 1st July 2017-Taxes on professions, trades, callings and

employments.
 From 1st July 2017-Entry continues in same form
Article 276. (1)……….
(2) The total amount payable in respect of any one person to the State or to
any one municipality, district board, local board or other local authority in
the State by way of taxes on professions, trades, callings and employments
shall not exceed two thousand and five hundred rupees per annum.
(3)…………
 Central Excise & Constitution
Sch. Seven, List I, Entry 84
 Before 1st July 2017-
 Duties of excise on tobacco and other goods manufactured or produced in India except—
(a) alcoholic liquors for human consumption;
(b) opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal
and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of
this entry.
 From 1st July 2017-
 “Duties of excise on the following goods manufactured or produced in India,
namely:
petroleum crude, high speed diesel, motor spirit (commonly known as “petrol”),
natural gas, aviation turbine fuel and tobacco and tobacco products. “
 Service Tax & Constitution
Sch.Seven, List II, entry 92C

 Before 1st July 2017-Taxes on services

 From 1st July 2017-entry 92C deleted
 GST & Constitution
[Constitution Amendment Act, 2016]
 “Goods and services tax” means any tax on supply of goods, or services or both except
taxes on the supply of the alcoholic liquor for human consumption [Art. 366(12A)]
 Parliament & Legislatures of all States have powers to make Laws to make laws with
respect to goods and services tax [Art. 246A(1)]
 Parliament has exclusive powers to make laws with respect to tax on inter-state supply of
goods and services [Art. 246A(2)]
 GST imposed on inter-state supplies shall be levied & collected by Govt. of India & shall be
apportioned between Union & States, in the manner, as per Law, made by Parliament on
recommendations of Parliament [Art. 269A(1)]
 Import shall be deemed to be an inter-state supply [Art. 269A (1) Expln.]
 Tax amount apportioned to State shall not form part of Consolidated Fund of India[Art.
269A(2)]
 GST & Constitution
[Constitution Amendment Act, 2016]

 Parliament may make Law to determine place of supply [Art. 269A(5)]

 GST Council shall be constituted by the President [Art. 279A(1)]
 Chairperson-Union Finance Minister
 Members-Union Minister of State [Finance or Revenue]
 Members-Ministers of State [Finance or Revenue] or a Minister, nominated by
state
 Vice-Chairperson shall be chosen by members of Council [Art. 279A(3)]
 GST & Constitution
[Constitution Amendment Act, 2016]

 GST Council may make recommendations [Art. 279A]to Union & States on:
 Taxes, cesses to be subsumed in GST
 Goods & services, which may be exempted or taxed
 Model GST Law, principles of place of supply etc.
 Turnover limit for registration
 GST rates
 Date from which GST on petroleum crude, diesel, petrol, natural gas & aviation turbine fuel
may be imposed
 Other issues
 GST Law & Constitution
[Constitution Amendment Act, 2016]

 Quorum for GST Council Meeting-50%

 Decision by a majority of 3/4th of weighted votes of members present & voting
 Central Govt. 1/3rd
 State Govt.- 2/3rd
 A mechanism shall be established by GST Council to adjudicate disputes between Govt. of
India & state governments or amongst state governments
 “Services” means anything other than goods [Art. 366(26A)]
 Act, Rules, Notifications- How made ?
 Bill is introduced in Vidhan Sabha or Vidhan Parishad
 Money Bill can be introduced only in Vidhan Sabha
 Bill is passed by Vidhan Sabha/Vidhan Parishad and then by Vidhan
Parishad/Vidhan Sabha
 When signed by the Governor, Bill becomes “Act”
 Similar procedure for a Central Law
 Act is the Law of the Land & not the Bill
 In Act, powers are normally given to the Government to make rules, forms and to
issue notifications [also called as subordinate legislation]
 Rules & notifications are made by governments & are published in Official
Gazette
 How to Read Any Law
 Read slowly, understanding each word
 Pause for a moment at each word and understand it’s meaning
 In short, read at a speed of an illiterate person
 व्याख्या हव्यात कशाला
 Importance of Definitions
 Refer definitions sec. 2, when you come across any term
 Types of definitions
 Meaning

 Including

 Excluding

 Explanation

 Group Exercise-List out definitions, as per types

व्याख्या, अंतिम सत्य आहेत का ?

?
 का वाचू मी नियम ?
 Act is passed by the Legislature
 Not possible to provide normal procedural aspects in Act, hence Act empowers the
Government to make rules.
 Refer to rule, wherever the term, “prescribed” is used
 “prescribed”means prescribed by rules made under this Act on the
recommendations of the Council; [CGST sec. 2(87)]
 It could be good practise to write rule number & form number against respective
section.
 Of there is discrepancy between a provision in Act & rule
 Provision in Act will prevail
का वाचू मी नियम ?
 का वाचू मी अधिसुचना ?

 “notification” means a notification published in the Official Gazette and the expressions
“notify” and “notified” shall be construed accordingly; [CGST sec. 2 (80)]
 Notifications contains:
 Rates of tax
 Different schemes such as composition scheme, reverse charge mechanism etc.
 Govt, can issue notifications only on the subjects, on which it is empowered in the Act
का वाचू मी अधिसुचना ?
का वाचू मी अधिसुचना ?
 कायद्यातील परिच्छेदांना काय म्हणतात ?
 Different paras in an Act/Rule are referred to as :
 Section/rule

 Sub-section/sub-rule

 Clause

 Sub-clause

 Proviso

First proviso [Provided that…..]

Second proviso [Provided further that…..]
Third proviso [Provided also that……]
 You Must know these names, since you would be referring to these in your orders
 Wrong reference may create problem
कायद्यातील परिच्छेदांना काय म्हणतात ?

Sub-section

Clause (b) of sub-sec.

(1) of sec. 29
कायद्यातील परिच्छेदांना काय म्हणतात ?

First Marginal
Proviso Note

Second
Proviso

Third
Proviso
 कायद्यातील तरतुदींचा उल्लेख आदेशात कसा करू ?

Sec. 29(1)(a)
मी CGST आणि MGST दोन्ही कायदे वाचू का ?
 Both CGST & MGST Acts are almost identical
 Very few provisions are different
 For example
 Transitional Provisions [Chapter XX]
 Sec. 54(3) Third Proviso
 Advance Ruling provisions
 National Appellate Authority for Advance ruling
 Rate notifications are identical
 हे सगळे मी कु ठे वाचू

 Books
 Websites
 CBIC http://www.cbic.gov.in/
 Mahagst https://www.mahagst.gov.in/
 GST Council http://www.gstcouncil.gov.in/
 Commonly Found Words in Law
 Provided that [Provided further that, Provided also that]
 Notwithstanding anything contained in……
 Deemed to be……..
 Prescribed……..
 Notified………
 Subject to…………..
 Without prejudice to…..
 “may” & “shall”
 “and” & “or”
Provided that……
 सर्व प्रशिक्षणार्थी , ह्या व्याख्यानाची टिपण्णी काढतील.
 परंतु, जे PPT मध्ये लिहिले आहे त्याची टिपण्णी काढण्याची गरज नसेल.
 Provided that…….
 सलग ६ विवरण पत्रे दाखल न के ल्यास नोंदणी दाखला अधिकाऱ्यास रद्द करता येईल ;sec. 29(2)(c)
 परंतु, करदात्यास सुनावणीची संधी दिल्या शिवाय अधिकारी नोंदणी दाखल रद्द करणार नाही sec. 29(2)(c) Proviso
Notwithstanding anything contained in
………
 Notwithstanding anything contained in
 this sub-section
 this section
 this chapter
 this Act

 any other law

Notwithstanding anything contained in
………
Notwithstanding anything contained in
………
Deemed to be ………
 Notwithstanding…..
Deemed to be…..

Sec. 15

Deemed to be
Deemed ?

MGST
sec.
28(3)
As may be prescribed…. MGST
Rules

MGST
Act
CGST
By Notification……. CGST
Notfn.
Act
 Subject to……
 Subject to…….
 Subject such conditions, restrictions as may be prescribed
 Subject to the provisions of
Section……..

Other provisions of this Act

Any Central Law
Any law
Subject to ……..
Without prejudice to ………
“May” & “Shall”
“May” & “Shall”
Read and Compare
“And” & “Or”
Effect Dates
 Effect Date

Amendment Act Amendment Act

No. Date

Multiple
effect dates
 Effect Date
CGST Amendment Act, 2018

Retrospective
effect
Effect Date of Corrigendum

 Corrigendum is an admission of a mistake and is not an amendment

 So, corrigendum is effective from the date of original amendment, which is being
corrected
Thank You