GST SUMMARY NOTES - MOHIT SHARMA CLASSES UGC NET

19 Dec 2014 Constitution (122nd Amendment) Bill, 2014 was introduced.  Double Taxation of a transaction as both goods & services.
6 May 2015 Constitution (122nd Amendment) Bill, 2014 was passed by Lok Sabha.  Cascading of Taxes due to (i) Non-VATable CST & (ii) VAT on ‘Value + Excise Duty’.
3 Aug 2016 It was passed by Rajya Sabha (with some changes).
 Set off of CENVAT & State VAT against the credit of one another was not possible.
8 Aug 2016 Changes made were unanimously passed by Lok Sabha.
 Several Local taxes in states (Ex: Entertainment tax) were not subsumed in State VAT.
8 Sept 2016  Final assent of President of India was given.
 122nd Amendment Bill, 2014 became (101st Amendment) Act, 2016.  Non-integration of VAT & Service Tax:
1 July 2017 GST law was made applicable in India (except J&K).  When goods were manufactured & sold, both CENVAT & State-level VAT were levied.
8 July 2017 GST law was made applicable to J&K.
PC Note: Concept of GST was introduced first of all in France in 1954. Value Added Tax Continuous Chain of Credit Burden on Final Consumer
DUAL GST Model: India has adopted its GST model from Canada & Brazil. No Cascading Effect No Double Taxation Uniform Tax Structure

246A(1) Concurrent power to levy GST has been given to Parliament & State.  Creation of Unified national market.
246A(2) Exclusive power of Parliament (for Inter – State supply  IGST).  Mitigation of cascading effect.
 Elimination of double (multiple) taxation  Removal of many Indirect taxes.
 Boost to ‘make in India’ initiative  Since Lower cost due to reduced taxes.
Dual GST  Centre & States levy GST (simultaneously) on INTRA state supply of G/&S.
 Increase in revenue  Since GST rates are lower & thus more people will pay tax.
[Canada  Centre has power to tax Intra-State Sales & States have power to tax services.
& Brazil] PC Note: On Inter-state supply, only Centre will levy GST (i.e IGST).  It will boost export & manufacturing & thus more employment, leading to rise in GDP.
GST Acts Name of the Act No. of Act Tax
CGST Act, 2017 1 CGST Intra State Supply [If Location of Supplier & PoS are in same state/UT]
SGST Act, 2017 31 SGST CGST  levied & collected by CG CGST Act
UTGST Act, 2017 1 UTGST SGST  levied & collected by SGs/UTs with Legislatures SGST Act
IGST Act, 2017 1 IGST UTGST  levied & collected by UTs without Legislatures UTGST Act
GST (Compensation to States) Act, 2017 1 Compensation Cess Inter State Supply [If Location of Supplier & PoS are in different state/UT]
Max. Rate  IGST: 40%; CGST & SGST: 20%. IGST  Levied & collected by CG on all inter-State supplies IGST Act
of GST  Rates of IGST shall be decided by CG on recommendations of GST Council.  apportioned b/w CG & SG in manner provided by
Parliament as per recommendation of GST Council.
PC Note: No need to remember GST Rates for every G&S. They will be given in exams. PC Note: Import of G/&S → Deemed as Inter-State supply & thus IGST + BCD will levied.

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 MOHIT SHARMA CLASSES
Meaning of GST → Any tax on supply of G/&S except on alcoholic liquor for human consumption. Presently, GST is not levied on Petroleum crude, diesel, petrol, ATF & Natural gas.
PC Note: GST will be levied on Petroleum Products (Petroleum crude, High Speed Diesel, Motor Spirit, Natural Gas & ATF) from Notified Date on recommendation of GST Council.

PC Note: Real estate sector has been kept out of ambit of GST. [GST will
Goods GST Excise Duty VAT/CST not be levied on sale/purchase of immovable property].
Alcoholic liquor for Human Consumption ⌧   Class Note:
Petroleum crude, HSD, Motor Spirit, Natural Gas, ATF ⌧  
Tobacco & Tobacco Products   ⌧
Other Goods  ⌧ ⌧

Central Taxes State Taxes Basics Customs Duty

Excise Duty Additional Duties of Excise Service Tax Purchase Tax & Luxury Tax Tax on Advertisements Excise Duty on Alcohol
Excise Duty on Medicinal & Toilet Preparation Entry tax, Octroi, Local Body Tax State VAT (Sales Tax) Excise Duty on Petroleum Products
Additional/ Special Additional duties of Customs [CVD/SAD] Taxes on Lottery, Betting & Gambling Electricity Duty
Sales Tax [levied by CG; collected by SG] Entertainment Tax (except those levied by local bodies) Stamp Duty & Property Tax
Central Surcharge & Cess [Ex: KKC, SBC, EC] State Surcharge & Cess

What is GSTN  Non-Government, Private Ltd.; Sec 8 Company.

 Common GST Electronic Portal (www.gst.gov.in), a website managed by GSTN has been set
 It is backbone of technology used for GST.
 to establish uniform interface for taxpayer; Functions of  Facilitating registration; [Filing of application]
 common & shared IT infrastructure b/w Centre & States. GSTN [IMP]  Forwarding returns to CG & SG authorities;
 This portal is one single common portal for all GST related services.  Computation & Settlement of IGST payment.
 Matching of tax payment details with banking network;
 It acts as a clearing house to verify claims & informs respective governments to transfer funds.
 Providing various MIS reports to CG & SG
 A common GST system provides linkage to all State/UT Commercial Tax Departments, Central Tax  Creation of Challan for tax payment
authorities, Taxpayers, Banks & other stakeholders.  Providing analysis of taxpayers' profile; & running
 It is accessible over Internet by taxpayers & their CAs/Advocates & over Intranet by Tax Officials etc. matching engine for matching, reversal & reclaim of ITC.
Note: All statutory functions like approval of registration, Assessment, Audit,
 GSTN provides 3 front end services (i) Registration (ii) Payment; (iii) Return.
Appeal, enforcement etc. will remain with respective tax departments.

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 GSTN has selected certain IT, ITeS & financial technology companies, to be called GST Suvidha Providers (GSPs).
 GSPs develop applications to be used by taxpayers for interacting with GSTN.
 They facilitate the taxpayers in uploading invoices as well as filing of returns and act as a single stop shop for GST related services.
 They customize products that address the needs of different segment of users.
 GSPs may take the help of Application Service Providers (ASPs) who act as a link b/w taxpayers & GSPs.

Constitution &  Article 279A empowers President to constitute a joint forum of Centre & States.
Enforcement  Provisions relating to GST Council came into force on 12th September, 2016.
 President constituted GST Council on 15th September, 2016.
 Chairman of GST Council  Union Finance Minister.
 Members of GST council  Union Minister of State in charge of Revenue/Finance, Ministers in charge of Finance/Taxation or any other Minister nominated
by each States & UTs with SL.
Functions Make recommendations to Union & States on important issues like
(a) taxes, cesses & surcharges which may be subsumed in GST;
(b) Goods & Services that may be subjected to, or exempted from GST;
(c) Model GST Laws, Principles of levy, apportionment of GST & the principles that govern the place of supply;
(d) Threshold limit of turnover below which G&S may be exempted from GST;
(e) Rates including floor rates with bands of GST;

PC Note: ◾ Tax rates; ◾ Exemptions; ◾ Threshold limits; ◾ Dispute resolution; ◾ GST legislations.

Decision  Every decision of GST Council is taken by a majority of not less than ¾th of weighted votes of members present & voting.
 Vote of Centre has a weightage of 1/3rd of total votes cast &
 Votes of all SGs together has a weightage of 2/3rd of total votes cast, in that meeting.
Article 279A(4)(f)  Special Category States → Assam, AP, Manipur, Meghalaya, Mizoram [MMM], Nagaland, Sikkim, Tripura, J&K, Himachal Pradesh (HP), Uttrakhand (UK).

Article 279A(4)(g)  GST council shall recommend the date on which GST shall be levied on above-mentioned 5 Petroleum products.