GST Acts: CGST Act, SGST Act, IGST Act Notes

GST Acts: CGST Act, SGST Act, IGST Act Notes

CGST: The tax will be imposed by the central government of India. It will replace excise duty, service tax, SAD (Special Additional Duty), CVD (Countervailing Duty), ADE (Additional Duties of Excise) and other indirect taxes levied by the central government. CGST will be applicable on supplies within a state and the tax revenue will go only to the central government.

SGST: The tax will be imposed by the state government. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. SGST will be applicable on supplies within a state and the tax revenue will go only to the state government.

UTGST: The tax will be imposed by the Union Territory of Chnadigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Delhi and, Puducherry. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. UTGST will be applicable on supplies within , a union territory.

IGST: Integrated, Goods and service tax.

IGST: “Integrated Goods and Services Tax” (IGST) means tax levied under the IGST Act on the supply of any goods and/or services in the course of inter-State trade or commerce.

Aggregate turnover: An Aggregate turnover means the aggregate value of all taxable supplies, exempt supplies and exports of goods and/ or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be. Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis, under sub-section (3) of Section 8 and the value of inward supplies.

Adjudicating authority: Any authority Competent to pass any order or (4) decision under this Act, but does not include the Board/the Revisional Authority, Authority for Advance Ruiing, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal.

Agent: An “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business Of supply or receipt of goods or services on behalf of another, whether disclosed or not.

Goods: It means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Capital goods: It means goods, the value of which is capitalised in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business.

Casual taxable person: A person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business.

Place of business: place from where the business is ordinarily carried on, and includes a warehouse; a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services. Composite supply; It means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.

Mised supply refers to two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Exempt Supply of any goods or services is one which attracts nil rate of tax or which may be wholly exempt from tax. It includes non-taxable supply. In case of exempt supply in respect of any goods and/or services, the taxable person shall not be required to pay tax.

Zero-Rated Supply: It means export or supply of goods or services to a Special Economic Zone developer or a Special Economic Zone unit.

Non-Taxable Supply: Non-taxable supply is sale of any goods or services which attracts nil rate of tax and is similar to exempt supply.

Taxable Supply: It means the Supply on which tax shall be paid under GST.

Inward supply: It means in relation to a person, shall mean receipt of goods and/or services whether by purchase, acquisition or any other means and whether or not for any , consideration.

Outward supply: It is in relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other means made or agreed to be made by such person in the course or furtherance of business.

Job work: It means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job worker” shall be construed accordingly

Input: It means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.

Input service: Input service means any service used or intended to be used by a supplier in the’ course or furtherance of business.

Input service distributor: It means an office of the supplier of goods and / or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above.

Input tax: A input tax in relation to a taxable person, means the IGST, including that on import of goods, CGST and SGST charged on any supply of goods or services to him and includes the tax payable under sub-section (3) of section 8, but does not include the tax paid under section 9.

Reverse charge: Reverse charge is the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified under sub-section (3) of section 8.

Works contract: If means a contract wherein transfer of property in goods is involved in the execution of such contract and includes contract for building, construction, fabrication, completion, erection, installation, fitting out. improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property.

Non taxable person: It means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India.

Supplier: It means in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in’ relation to the goods and/or services supplied.

Export of services:

• The supplier of service is located in India
• The recipient of service is located outside India.
• The place of supply of service is outside India.

Import of services:

• The supplier of service is located outside India.
• The recipient of service is located in India
• The place of supply of service is in India.

Intermediary: A. “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

Authorities not permitted to pass an order/ decision under the GST laws:

• The Central Board of Excise and Customs.
• Revisional Authority.
• Authority for Advance Ruling
• Appellate Authority for Advance Ruling
• Appellate Authority
• Appellate Tribunal.