CAASA Tax Table 2nd Edition

ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[2ND
EDITION]
GOODS
“Goods” means every kind of movable property other than actionable claim and money
but includes securities, growing crops, grass and things attached to or forming a part of
the land which is agreed to be severed before supply or under the contract of supply.
SERVICES
Services mean anything other than goods. Services include Intangible property and
actionable claim.But does not include money.
SUPPLY
Section 3 of the Model CGST/SGST Act, 2016 [also applicable for the Model IGST Act
vide Section 2(f) thereof] specifies the meaning and scope of the term supply, broadly, in
the following
Sub- section1 (a) states, Supply includes
 All forms of supply of goods and/or services such as;
 sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to
be made for a consideration by a person in the course or furtherance of business.
Sub- section 1(b)
Importation of service, whether or not for a consideration and whether or not in the
course or furtherance of business.
Sub –section 1(c)
Supply Without consideration, A supply specified in Schedule I (Matters to be treated
as supply without consideration), made or agreed to be made without consideration.
Sub –section 2
Supply of goods v/s Supply of services Schedule II (Matters to be treated as supply of
goods or services), in respect of matters mentioned therein, shall apply for determining
what is, or is to be treated as either supply of goods or supply of services.
CA ABHISHEK AGARWAL, ACA, DISA M| 9831982004 E|abhishek@caasa.org W| www.caasa.org
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[2ND
EDITION]
Sub- section 2(A)
Principal – Agent Transaction ,Where a person acting as an agent who, for an agreed
commission or brokerage, either supplies or receives any goods and/or services on behalf
of any principal, the transaction between such principal and agent shall be deemed to be a
supply.
Sub- section 3
Power(s) of Central/State government Subject to sub-section 2, the Central or a State
Government may, upon recommendation of the GST council, specify, by notification, the
transactions that are to be treated as:-
a. a supply of goods and not as a supply of services; or
b. a supply of services and not as a supply of goods; or
c. neither a supply of goods nor a supply of services.
Q. Is the reverse charge mechanism applicable only to services?
Ans. No, reverse charge applies to supplies of both goods and services.
Q. What will be the implications in case of purchase of goods from unregistered dealers?
Ans. The receiver of goods could be liable to pay tax under reverse charge.
“LEVY OF TAX”
Section 7 states that the person registered under this law is liable to pay tax if his
aggregate turnover in a financial year exceeds Rs. 10 lakh (north eastern states Rs. 5
lakh).
A negative list has also been prescribed for transactions and activities of Government and
local authorities which shall be exempt from GST levy, like activities of issuance of
passport, visa, driving license, birth certificate or death certificate etc.
IGST (Integrated GST) will be levied on interstate supply. CGST (Central GST and
SCGT (State GST) will be levied on intrastate supply of goods and /or services.
Option for Composition Scheme: If turnover in a financial year does not exceed Rs. 50
lakh. Rate of tax (termed as ‘Amount ‘not ‘Tax’) shall not be less than 1%.
Taxable event:
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TAX TABLE
[2ND
EDITION]
The taxable event under GST regime will be supply of goods or services. Supply
includes all forms of supply of goods and /or services such as sale, transfer, barter,
exchange, license, rental, lease or disposal made or agreed to be made for a consideration.
It also includes importation of service, whether or not for a consideration. So the
erstwhile taxable heads such as manufacture, sale, provision of service etc., will lose
relevance.
COMPOSITION LEVY
Section 8 states that a registered taxable person, whose aggregate turnover in a financial
year does not exceed 50 lakhs, shall be provided an option to pay, in lieu of the tax
payable by him, an amount calculated at such rate as may be prescribed, but not less than
1% of the turnover during the year, subject to following conditions:
Q. Can the composition tax be lower than 1%?
Ans. No, composition scheme would become applicable for all the business verticals /
registrations which are separately held by the person with same PAN
Q. Can composition scheme be availed if the taxable person effects inter-State supplies?
Ans. No, composition scheme is applicable subject to the condition that the taxable
person does not effect inter-state supplies.
Q. Can the taxable person under composition scheme claim input tax credit?
Ans. No, taxable person under composition scheme is not eligible to claim input tax
credit.
Q. Can the customer who buys from a taxable person who is under the composition
scheme claim composition tax as input tax credit?
Ans. No, customer who buys goods from taxable person who is under composition
scheme is not eligible for composition input tax credit.
Q. Can composition tax be collected from customers?
Ans. No, the taxable person under composition scheme is restricted from collecting tax.
Q. What is the threshold for opting to pay tax under the composition scheme?
Ans. The threshold for composition scheme is Rs. 50 Lakhs of aggregate turnover in
financialyear.
Q. How to compute ‘aggregate turnover’ to determine eligibility for composition
scheme?
Ans. The methodology to compute aggregate turnover is given in Section 2(6).
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TAX TABLE
[2ND
EDITION]
Accordingly,
‘aggregate turnover’ means ‘Value of all (taxable and non-taxable supplies +
Exempt supplies + Exports) – (Taxes + Value of inward supplies + Value of
supplies taxable under reverse charge) of a person having the same PAN.
Q. What does a person having the same PAN mean?
Ans. “Person having the same PAN” means all the entities across India having the same
PAN.
Q. What are the penal consequences if a taxable person violates the condition and is not
eligible for payment of tax under the Composition scheme?
Ans. Taxable person who is not eligible for the said scheme, could be subject to tax plus
penalty equivalent to the tax.
TAXABLE PERSON
Section 9 defines taxable Person as a person who carriage on business in India or any
state of India he would be a taxable person.
Threshold limit of Taxable Person:
A person is liable to pay tax if his aggregate turnover in a financial year exceeds 10
lakhs. However, a person conducting business in any of the North Eastern
States including Sikkim is required to pay tax if his aggregate turnover exceeds 5 lakhs.
The Central Government, a State Government or any Local Authority shall be regarded as
a taxable person in respect of activities or transactions in which they are engaged as
public authorities other than the activities or transactions as specified in Schedule IV to
this Act, like activities of issuance of passport, visa, birth certificate etc.
Following Persons not to be considered as taxable person:
 Any person who provides services as an employee to his employer in
the course of, or in relation to his employment, or by any other legal
ties creating the relationship of employer and employee as regards
working conditions, remunerations and employer’s liability;
 Any person engaged in the business of exclusively supplying goods
and/or services that are not liable to tax under this Act;
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[2ND
EDITION]
 Any person, liable to pay tax under reverse charge basis, receiving
services of value not exceeding the amount as may be prescribed in a
year for personal use, other than for use in the course or furtherance of
his business.
POWER TO GRANT EXEMPTION FROM TAX
As per section 10 of the draft law, the Central/ State Governments are empowered
to grant exemptions from CGST/ SGST by way of issuance of notification (or by
special order in circumstances of an exceptional nature), on the recommendation
of the GST Council.
Where exemptions are granted absolutely, no tax shall be paid on such goods/
services.For the purpose of clarifying the scope or applicability of any notification,
an explanation may be inserted within one year of issuance of the notification,
which will have effect as if it had always been part of the said notification.
REMISSION OF TAX ON SUPPLIES
Section 11 states that, the Central or a State Government may, by rules made under this
sub-section, provide for remission of tax on such supplies which are found to be
deficient in quantity due to any natural causes.
MIGRATION OF EXISTING TAXPAYERS TO GST
Section 142 of the Model GST law states that there will be NO automatic registration
under GST framework for those taxpayers who are already registered under State/Central
Government under State VAT. Every Taxpayer will required to be registered under
GST [Section 19], there will be multiple registrations for every State and verticals,
however a provisional certificate of registration will be issued for initial six month to
every assesses who was registered under any of the earlier laws.
SECTION 143(1): CENVAT OR INPUT TAX CREDIT BALANCE
The amount of the CENVAT or VAT Credit which is eligible in hands of a person as per
the existing laws and is so availed and carried forward by him and disclosed in the return
furnished under the Central Excise, Service Tax or VAT laws, for the period ending the
day immediately preceding the day when the GST Act comes into force, shall be allowed
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[2ND
EDITION]
as input tax credit under the GST laws is such credit is allowable under the GST law to be
applicable.
Section 144: ÙNAVAILED CENVAT CREDIT ON CAPITAL GOODS
A registered taxable person shall be entitled to take the credit of the un-availed Cenvat
Credit in respect of Capital Goods, not carried forward in a return, furnished under the
earlier law by him. Provided that where such carry forward shall not be allowed, if the
Cenvat Credit permissible under the earlier law is not admissible under the GST Law for
the particular capital goods.
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CAASA Tax Table 2nd Edition

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