GST The Goods & Services Tax Act - PowerPoint Presentation

1. GSTThe Goods & Services Tax Act 2017Yesterday, today and tomorrowONE INDIA ONE TAXCMA Suresh Pimple B.Sc(HONS), FCMA , DISA

2. GST……YesterdayMultiplicity of Taxes.No Uniformity.Double Taxation.Cascading Effect.Delay in processsingAttend different offices with different set of rulesManual WorkingFrequent visits of assessee required-side effect chances of corruption were moreVery old laws-Excise 1944, Service Tax no legislation,CST 1956 etc

3. Introduction The Goods & Services Tax Act, popularly known as GST became applicable from 1st July, 2017.In principal it is “ One Nation- One Tax” but in reality there are various legislations like CGTST, SGST, IGST,UTGST, The State Compensation Act etc. There are various slabs of the Act like 0%,0.25%,3%,5%,12%, 18%, 28% plus some cesses above this .There are exceptions like threeshold ,compensation scheme exemptions etc. which is not in the spirit of one nation one tax.

4. Overlapping of State and Central TaxesDistinction between service and goods is hazy in cases like works contract, food related services, software, Intellectual Property Rights (IPR)SIM Card, Smart Card – goods or service?Ambiguity in taxation on service tax on renting of goods

5. GST to overcome some of these defectsGST is being introduced to overcome many of these defectsThe GST as proposed is not ideal, but is the best that can be achieved in given circumstances and political situationLet us hope that GST become Good and Sensible Tax and not “Gabbar Singh Tax”

6. New concepts in GST Destination based tax- Consuming state will get tax revenue and not to producing/trading states.All the processes e.g. registration, uploading invoices, matching invoices, payments, returns etc. are online on common portal-gst.gov.inTax payer has option to upload various applications/ forms on portal directly through practisionersAnti profiteering clause has been introduced first timeTariff fixation is by GST council only-Description of goods and services with rates of taxes on them is with councils.

7. Negative list for levy of taxEmployer-employee services in the course of employment.Services of Tribunals or any CourtFunctions of MPs/MLAc and other elected members.Services of Funeral, burial, crematorium etc.Sale of land and building (Not construction)Actionable claims –paper money but not lottery, betting and gambling etc.Supplies to SEZ and Export.No GST for Electricity, Petroleum products, Alcohol and state excise items, buildings etc.

8. ExemptionsTurnover below Rs. 20 lakh – Small Scale industries (10 lakh in certain states) –Turnover include all supplies like taxable supplies, exempt supplies, interstate supplies but without the GST and cess. Threshold limit is not applicable to following..Inter state supplyCasual Taxable Person –No principal place in stateRCM –Receiver of goods/servicesNon resident taxable personAgent of any other personInput service distributorEcommerce –operator etc.

9. Composition sCHEMEIf turnover in previous financial year did not exceed Rs. 1 crFor traders and manufacturer GST @ 1%For services only Restaurant considered GST@5%.otherwise also it is now 5% for small hotels.The ITC is not allowed. They have to display prominently in their BUSINESS PLACES File returns quarterly in R 4Option to be exercised in form Comp-1 and Comp 2 for next year.

10. Kelkar CommitteeKelkar Committee first recommended national GST in 2004Cenvat credit of service tax and excise duty made inter-changeable w.e.f. 10-9-2004. Thus there is Vat at centre levelVat at State level implementedGST will merge both Central and State Vats and ensure seamless transactions

11. GST - OverviewState Government will levy SGST (State GST) and Central Government will levy CGST (Central GST) on supply of goods and services within the StateCentral Government will levy Integrated GST (IGST) on supply of goods and service in inter state trade or commerce and similar CVD on imports

12. Categories of Supply of goods and servicesCategories of Supply of goods and servicesInter-State – pay IGST (equal to CGST + SGST)import – pay customs duty and IGSTExports – zero rated – no taxIntra-State – SGST and CGST

13. TAXES TO BE SUBSUMED INTO CGSTEXCISE DUTYSERVICE TAXSADSURCHARGECESSESCVDMEDICALEXCISECGST

14. TAXES TO BE SUBSUMED INTO SGSTVAT / Sales TaxEntry TaxPurchase TaxTaxes onlottery, bettingand gamblingLuxury TaxEntertainmentTaxState Cesses &SurchargesSGST

15. GST MODEL WORLD-WIDENational GSTState GSTNon-concurrentDual GSTConcurrentDual GSTQuebec ModelTax levied byCentre withprovisions forrevenuesharing withProvinces/StatesTax leviedbyProvinces/StatesGST on goodslevied by State& on Serviceslevied byCentreTax levied byCentre & Stateon both Goods& ServicesSeparatelegislation forFederal/Provinces – Taxcollection,Admn,Enforcements,etc., byProvincesAustralia/ ChinaUSABrazil & Canada– “India”

16. . GST IN INDIA AT GLANCEPreliminary Administration Logic and Theory Processes Prosecution Transitional ProvisionSec. 1-3 Sec. 4-7 & 53,54, Sec.8-22 Sec.23-52 Sec.66-164 Sec. 165-197 Sec.63-65 Sec.55-62 8-Levy Registration, Demand & General Provo.,Extent, 9-Composition Tax Invoice, Recovery, Migration of Meaning, Power of Levy Returns, Inspection, existing taxpayers, Scope of Officers 10-Taxable Payment Search, etc. Suppy. under Person of Taxes Seizure & CGST/SGST, 11-Power Refund, Arrest, Audit, to Exempt etc. Offences & Accounts & 12-15-Time & Penalties, Records, Value of suppy etc. etc. 16-22-ITC

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18. GSTN Enrollment processPersons liable for registration:- - As per CGST Act 2017, Sec2(2) “ Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

19. Migration of persons registered under the existing lawCGST ACT 2017(a) Every person, other than a person deducting tax at source or an Input Service Distributor, registered under an existing law and having a Permanent Account Number issued under the Income-tax Act, 1961 (Act 43 of 1961) shall enroll on the Common Portal by validating his e-mail address and mobile number, either directly or through a Facilitation Centre notified by the Commissioner. (b) Above (a), the said person shall be granted registration on a provisional basis and a certificate of registration in FORM GST REG-25, incorporating the GSTIN therein, shall be made available to him on the Common Portal : a taxable person who has been granted multiple registrations under the existing law on the basis of a single PAN shall be granted only one provisional registration under the Act.

20. RegistrationProvided further that a person having centralized registration under Chapter V of the Finance Act, 1994 shall be granted only one provisional registration in the State or Union territory in which he is registered under the existing law. (CGST Rules only)(a) Every person who has been granted a provisional registration under sub rule (1) shall submit an application electronically in FORM GST REG–24, duly signed, along with the information and documents specified in the said application, on the Common Portal either directly or through a Facilitation Centre notified by the Commissioner. (b) The information asked for in clause (a) shall be furnished within a period of three months or within such further period as may be extended by in this behalf.

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22. RegistrationProvided that no provisional registration shall be cancelled as aforesaid without serving a notice to show cause in FORM GST REG-27 and without affording the person concerned a reasonable opportunity of being heardProvided further that the show cause notice issued in FORM GST REG-27 can be vacated by issuing an order in FORM GST REG-19, if it is found, after affording the person an opportunity of being heard, that no such cause exists for which the notice was issued.(4) Every person registered under any of the existing laws, who is not liable to be registered under the Act may, within thirty days from the appointed day, at his option, submit an application electronically in FORM GST REG-28 at the Common Portal for cancellation of the registration granted to him and the proper officer shall, after conducting such enquiry as deemed fit, cancel the said registration.

23. FAQ Q. If a person is operating in different states, with the same PAN no., whether he can operate with a single Registration? Ans. No. Every person who is liable to take a Registration will have to get registered separately for each of the states where he has a business operation and is liable to pay GST in terms of Sec19(1) of Model GST Law.

24. Section 7: “Supply”(a) all forms of supply of goods or services or both such as – sale, transfer, barter, exchange, licence, rental, lease, or disposalmade or agreed to be made for a consideration by a person in the course or furtherance of business;

25. CON…(b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; e.g(Transfer to related party/principal & agent)(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.(transfer of title,HP,Renting etc.)

26. Section 12: Time of Supply of GoodsThe liability to pay tax on goods shall arise at the time of supply.The time of supply of goods shall be –the date of issue of invoice by the supplier orthe date on which the supplier receives the payment whichever is earlier.In case of Reverse Charge –the date of the receipt of the goods orthe date of payment or30 days from the date of Issue of Invoice by Supplier. whichever is earlier.

27. Section 13: Time of Supply of ServicesThe liability to pay tax on services shall arise at the time of supply.The time of supply of services shall be –1. the date of issue of invoice by the supplier2. the date on which the supplier receives the payment whichever is earlier.If Invoice is not issued within 30 days from the date of completion of services then –1. the date of completion of services by the supplier2. the date on which the supplier receives the payment whichever is earlier.

28. TAX DEDUCTION AT SOURCE [TDS] [SECTION 51]Deductor = The Person who required to deduct tax before making payment.Deductee = The Person whose tax is deducted.The Government may by notification specify the Person to deduct tax at source from the payment to the Supplier if the total value of supply is more than Rs.2,50,000.This TDS provision will be applicable only if supply of goods is within the state of registration.

29. TAX DEDUCTION AT SOURCE [TDS] [SECTION 51]Maximum rate of TDS will be 1%.This TDS should be deposited to the Govt. within 10 days of the following month.The deductee shall claim credit, in his Electronic Cash Ledger, of the tax deducted and reflected in the return of the deductor .

30. TAX COLLECTION AT SOURCE [TCS] [SECTION 52]Electronic Commerce Operator” means –any person who –(i) owns;(ii) operates; or(iii) manages- digital or electronic facility or platform for electronic commerce.

31. TAX COLLECTION AT SOURCE [TCS] [SECTION 52]Every Electronic Commerce Operator, not being an agent, shall collect tax as may be notified by the Government of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

32. TAX COLLECTION AT SOURCE [TCS] [SECTION 52]Maximum rate of TCS will be 1%.This TDS should be deposited to the Govt. within 10 days of the following month.The supplier who has supplied the goods or services or both through the operator shall claim credit, in his Electronic Cash Ledger, of the tax collected and reflected in the statement of the operator.

33. FAQQ. What will be the time of supply in continuous supply of services?Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion of event.

34. Valuation in GST FAQQ. What is the vale of taxable supply to be adopted for the levy of GST?Ans. The vale of taxable supply of goods and services shall ordinarily be ‘the transaction value’ which is the actually the price paid or payable, when the parties are not related and price is sole consideration.

35. Valuation in GST FAQQ. Are there separate valuation provisions for CGST, SGST and IGST and Goods & Services?Ans. No, sec.15 is common for all three taxes and also common for goods & services.

36. Valuation in GST FAQQ. When are valuation Rules applicable?Ans. Valuation rules are applicable when-Consideration not in money terms;Parties are related or supply by any specified category of supplier; andTransaction value declared is not reliable.

37. FAQQ. Is a job-worker required to take registration?Ans. Yes, as a job-worker would be a supplier of services, he would be required to obtain registration if his aggregate turnover exceeds the prescribed threshold.

38. Required for GST:Update customer & vendor masterVendor & Customer NameGSTIN NumberState of RegistrationPrinciple Place of BusinessAdditional place of businessHSN code of goods or Accounting Code of Service.Rate of tax(CGST, SGST or IGST)Place of supply etc.

39. INPUT TAX CREDITEvery registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 44, be entitled to take credit of input tax charged on any supply of goods or services to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961(43 of 1961), the input tax credit shall not be allowed on the said tax component.

40. ITCConditions for availment and utilization of ITCSupplier Invoice or any other tax paying documentsReceived the goods / servicesThe tax has been paid to the credit of the appropriate GovernmentReturn has been filed under the act.ITC will be allowed upon receipt of last lot or installment where goods received in lots against an invoice. ITC to be availed within period of one year from the date of invoice.ITC will not be allowed on any invoices after the filing of the return for the month of September following the end of financial year to which such invoice pertains or filing of the relevant annual return, whichever is earlier.

41. ITCAt the time of removal of capital goods, taxable person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by the percentage points (as specified) or the tax on the transaction value of such capital goods, whichever is higher.Where a taxable person switches to compounded levy or switches to exemptions, he shall pay ITC on the in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on such day.

42. Credit not allowed of following goods and servicesTax has been paid in pursuance of any order whee any demand has bee raised on account of fraud , wilful misstatement or suppression of factsWhere the goods or services or both are used partly for the purpose of business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of business

43. ITC negative list continuedPartly for taxable supplies and partly for effecting exempt supplies, the credit shall be restricted to so much of the input tax as is attributable to the taxable supplies including zero rated supplies . The value of exempt supplies shall be calculated in terms of formula prescribed in Rules and shall include supplies on which the recipent is liable to pay tax on reverse charge basis, transaction in securities,sale of land and building.

44. ITCComplete availment of any pending ITC/ CENVAT credit and carrying forward closing balance in the GST regime.Service tax vendor should Invoice before 30th june, 2017(in advance).RCM especially carryforward the Cenvat credit below 7.5 lakhs properly.Sec.140(1), CGST Act, a Registered person comes in an Composition Scheme.Credit of capital goods which is not availed in current taxation system, Credit to be availed by filling of GST Tran I within 60 days.

45. Input Tax Credit (ITC)Input Tax Credit of input goods, input services and capital goodsCredit of SGST and CGST not inter-changeableIGST credit can be used for CGST and SGST and vice versaCredit on basis of 26AS type returns

46. ITC MATCHING AND AUTO-REVERSALIt is a mechanism to prevent revenue leakage.The process of ITC Matching begins after the due date for filing of the return (20th of every month). This is carried out by GSTN.The details of every inward supply furnished by the recipient in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding supplier in his valid return.

47. ITC not allowed continuedA banking company or a financial institution including a non banking financial company, enaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of formula so prescribed or avail of every month, an amount equal to 50% or the input tax credit on inputs, capital goods and input services in that month and the rest shall lapse;

48. ITC MATCHING AND AUTO-REVERSALIn case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.

49. ITC not allowed : OthersMotor vehicles and other conveyance with certain exceptions i)food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an taxable composite or mixed supply

50. ITC not allowed: ContinuedMembership of a club, health and fitness centreRent a cab, life insurance and health insurance with certain exceptionsTravel benefits extended to employees on vacation such as leave or home travelWorks contract services with certain exceptionsGoods or services or both for contruction of immovable propertyComposition supplier payment of GST

51. ITC Not allowed : othersReceived by NRI taxable persons except on imported goodsPersonal consumptionGoods lost, stolen,destroyed, written off or disposed by way of gift or free samples Tax paid u/s 74- short paid, erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful misstatement or suppression of factsTax paid u/s 129: Detention, seizure and release of goods and conveyance in transit

52. ITC Not allowed : Tax paid u/s 130:Confiscation of goods or conveyance and levy of penalty:

53. ITC MATCHING AND AUTO-REVERSALIn case the ITC claimed by the recipient is in excess of the tax declared by the supplier or where the details of outward supply are not declared by the supplier in his valid returns, the discrepancy shall be communicated to both the supplier and the recipient. Similarly, in case, there is duplication of claim of ITC, the same shall be communicated to the recipient.

54. ITC MATCHING AND AUTO-REVERSALThe recipient will be asked to rectify the discrepancy of excess claim of ITC and in case the supplier has not rectified the discrepancy communicated in his valid returns for the month in which, the discrepancy is communicated, then such excess ITC as claimed by the recipient shall be added to the output tax liability of the recipient in the succeeding month.

55. ITC MATCHING AND AUTO-REVERSALSimilarly, duplication of ITC claimed by the recipient shall be added to the output tax liability of the recipient in the month in which, such duplication is communicated.The recipient shall be liable to pay interest on the excess or duplicate ITC added back to the output tax liability of the recipient from the date of availing of ITC till the corresponding additions are made in their returns.

56. GST tomorrowThe GST will stay for long time.There will be changes. Limit of composition will increase per year 1.5 cr.Rates will change favorably. Rates of 18% and 12% will merge. No of rates will slowly come down to 3 and ultimately to 1 rate.Petroleum Products and Electricity will be covered. In further development the real estate will be covered.

57. ITC MATCHING AND AUTO-REVERSALRe-claim of ITC refers to taking back the ITC reversed in the Electronic Credit Ledger of the recipient by way of reducing the output tax liability. Such re-claim can be made by the recipient only in case the supplier declares the details of the Invoice and/or Debit Notes in his valid return within the prescribed timeframe. In such case, the interest paid by the recipient shall be refunded to him by way of crediting the amount to his Electronic Cash Ledger.

58. . ELECTRONIC LEDGERS [SECTION 49] Each registered taxpayer get a profile created on the government’s GST website. All the taxpayers will get 3 electronic ledgers namely E-cash Ledger, E-credit Ledger, E-liability Ledger to settle the tax liability online. Electronic LedgersElectronic Cash Ledger Electronic Credit Ledger Electronic Liability Ledger (E-Cash Ledger) (E-Credit Ledger) (E-Liability Ledger) This ledger will reflect – Self Assessed ITC will The total tax liability (after (i) All deposits made in Cash be reflected here netting) for a particular month (ii) Tax Deducted at Source (TDS) will be shown here. (iii) Tax Collected at Source (TCS) Amount in this Ledger can be This Credit can be used only This Ledger will be automaticallyutilised for making any payment for payment of Tax. displayed on a GST Taxpayer’s i.e. Tax, Interest, Penalty etc. Interest, Penalty etc. cannot Dashboard. be paid

59. Zero Rated and Exempt transactionZero rated transaction - tax not payable on sales, but Credit of input taxes is available (e.g. exports, inter-state transaction, stock transfers to other State)In ‘exempted transaction’, tax is not payable but input tax credit (ITC) is not available Inter State transactions (sale or stock transfer) to be ‘zero rated’ under GST.

60. FAQ ON ITCQ. Can GST paid on reverse charge be considered as input tax?Ans. Yes. Definition of input tax includes the tax payable under sec.7(3) (Reverse Charge). The Credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.

61. FAQ ON ITCQ. A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. such person is eligible for input tax credit on inputs held in stock as on……..Ans. 31st July, 2017.

62. FAQ ON ITCQ. What is time limit for taking ITC?Ans. As per Sec16(15) , ITC cannot be taken beyond the month of September of the following FY to which invoice pertains or date of filling of annual return, whichever is earlier. The underlying reasoning for this restriction is that no change in return is permitted after September of next FY. If annual return is filled before the month of September then no change can be made after filing of annual return.

63. Anti-Profiteering Provisions Under the GST LawRules Not SpecifiedOne of the major contentions of industry against anti-profiteering clause is the lack of clarity on rules related to valuation and tax rates. While four slab-rates have been agreed upon by the GST council, Our OpinionAnti-profiteering is a transitional provision and will be a short-lived concept. It has been introduced to protect the interest of consumers and at the same time not harming the industry interest. Efforts should be made in the direction of a streamlined and transparent process to identify malign practice if any.

64. Variations from GST principlePetroleum products out of GSTTobacco products – Central Excise plus GST Alcoholic liquor out of GSTArea based Exemptions to continue – some option may be given

65. ACCOUNTS AND RECORDSEvery registered taxable person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of production or manufacture of goods, of inward or outward supply of goods and/or services, of stock of goods, of input tax credit availed, of output tax payable and paid, and such other particulars as may be prescribed in this behalf.PROVIDED that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned.PROVIDED FURTHER that the registered taxable person may keep and maintain such accounts and other particulars in the electronic form in the manner as may be prescribed.Every registered taxable person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a cost accountant or a chartered accountant.

66. Period of retention of accountsEvery registered taxable person required to keep and maintain books of account or other records under sub-section (1) of section 53 shall retain them until the expiry of sixty months from the due date of filing of Annual Return for the year pertaining to such accounts and records.PROVIDED that a taxable person, who is a party to an appeal or revision or any other proceeding before any Appellate Authority or Revisional Authority or Tribunal or Court, whether filed by him or by the department, or is under investigation for an offence under Chapter XIX, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding or investigation for a period of one year after final disposal of such appeal or revision or proceeding or investigation, or for the period specified above, whichever is later.Use Updated Software & ERP system.

67. Anti-Profiteering Provisions Under the GST LawClause 171 has been inserted in the GST ACT which provides that it is mandatory to pass on the benefit due to reduction in rate of tax or from input tax credit to the consumer by way of commensurate reduction in prices. This clause further provides for the establishment of an authority against anti-profiteering in order to ensure its compliance. While the end consumer may have some reason to cheer, the industry is still doubtful of its implementation.

68. Invoicing under GSTIn the GST regime, two types of invoices will be issued: 1. Tax invoice2. Bill of supply1. Tax InvoiceWhen a registered taxable person supplies taxable goods or services, a tax invoice is issued. Based on the rules regarding details required in a tax invoice, a sample tax invoice has been shown:

69. Con…

70. Con…2. Bill of SupplyTax invoice is generally issued to charge the tax and pass on the credit. In GST there are some instances where the supplier is not allowed to charge any tax and hence a Tax invoice can’t be issued instead another document called Bill of Supply is issued.Cases where a registered supplier needs to issue bill of supply:Supply of exempted goods or servicesSupplier is paying tax under composition scheme

71. How many copies of Tax Invoices are to be issued?Original invoice: When a buyer makes the purchase he gets the first copy of invoice, marked as ‘Original for recipient’.Duplicate copy:  The duplicate copy is issued to the transporter( carrier of goods) to present as evidence as and when required, and is marked as ‘Duplicate for transporter’. The transporter doesn’t need to carry the invoice if the supplier has obtained an invoice reference number.Triplicate copy: This copy is retained by the supplier for his own record.

72. LIABILITY TO PAY IN CERTAIN CASES1. Liability in case of transfer of business.Where a taxable person, liable to pay tax under this Act, transfers his business in whole or in part, by sale, gift, lease, leave and license, hire or in any other manner whatsoever, the taxable person and the person to whom the business is so transferred shall jointly and severally be liable wholly or, as the case may be, to the extent of such transfer, to pay the tax, interest or any penalty due from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter.Where the transferee or the lessee of a business referred to in subsection (1) carries on such business either in his own name or in some other name, he shall be liable to pay tax on the supply of goods and/or services effected by him with effect from the date of such transfer and shall, if he is an existing taxable person, apply within the prescribed time for amendment of his certificate of registration.

73. Con…..2. Liability of agent and principalWhere an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall be jointly and severally liable to pay the tax payable on such goods under the Act.

74. Liability in case of amalgamation /merger of companiesWhen two or more companies are amalgamated or merged by the order of court or of Tribunal or of the Central Government and the order is to take effect from a date earlier to the date of the order and any two or more of such companies have supplied or received any goods and/or services to or from each other during the period commencing on the date from which the order takes effect till the date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and shall be liable to tax accordingly.Notwithstanding anything contained in the said order, for all purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled, where necessary, with effect from the date of the said order.

75. Liability in case of company in liquidation When any company is being wound up whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any assets of a company (hereinafter referred to as the “liquidator”), shall, within thirty days after his appointment, give intimation of his appointment to the Commissioner.The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within three months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company.

76. Con……When any company is wound up and any tax, interest or penalty determined under this Act on the company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of such company at any time during the period for which the tax was due, shall jointly and severally be liable for the payment of such tax, interest or penalty, unless he proves to the satisfaction of the Commissioner that such non recovery is not attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

77. Liability of directors of private companyNotwithstanding anything contained in the Companies Act, 2013 (18 of 2013), where any tax due from a private company in respect of any supply of goods or services for any period or from any other company in respect of any supply of any period during which such other company was a private company cannot be recovered, then, every person who was a director of the private company during such period shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.Where a private company is converted into a public company and the tax assessed in respect of any supply of goods or services for any period during which such company was a private company cannot be recovered, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax due in respect of any supply of such private company.

78. Liability of partners of firm to pay taxNotwithstanding any contract to the contrary, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall jointly and severally be liable for such payment:PROVIDED that where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due up to the date of his retirement, whether determined or not, on that date:PROVIDED FURTHER that if no such intimation is given within one month from the date of retirement, the liability of such partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner.

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81. GST Rates

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86. GST Rates for goods RevisedThere would be two categories of GST rates on cinema, 28% in case tickets above Rs.100 and 18% in case of tickets up to Rs.100Cashew revised from 12% to 5%Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces revised from 18% to 12%Agarbatti revised from 12% to 5%Dental wax revised from 28% to 18%Insulin revised from 12% to 5%Plastic beads revised from 28% to 18%Plastic turpolin revised from 28% to 18%School bags revised from 28% to 18%Exercise books revised from 18% to 12%Coloring books revised from 12% to nilPre-cast concrete pipes revised from 28% to 18%Cutlery revised from 18% to 12%Tractor components revised from 28% to 18%Computer printers revised from 28% to 18%

87. GST tomorrowThe GST will stay for long time.There will be changes. Limit of composition will increase per year 1.5 cr.Rates will change favorably. Rates of 18% and 12% will merge. No of rates will slowly come down to 3 and ultimately to 1 rate.Petroleum Products and Electricity will be covered. In further development the real estate will be covered.

88. GST TomorrowAfter some time there will be stability in rates and at the time of budget there will not be changes on 28th Feb..All litigation on line. Presently in procedure no need to go to department for various submission. Even audit will be online. Data sharing between Income Tax, GST and Banks.There is trend in the world to integrate direct and indirect taxes. It will come in our coutry also. Integration of data may be first step. Expected “Good & Sensible Tax". Almost 160 countries in world are using GST likely other countries will follow. ThereBe ready to live with GST….

89. THANK YOU CMA SURESH PIMPLE Contact No. 9325480301/8275515676 Landline No. 0240-2488083 E-mail : pimple.suresh@gmail.com