GST SECTION 3 to 14

Section 3- The Government shall, by notification, appoint the following classes of officers for the purposes of this Act, namely: 

(a) Principal Chief Commissioners of Central Tax or Principal Directors General of Central Tax,

(b) Chief Commissioners of Central Tax or Directors General of Central Tax,

(c) Principal Commissioners of Central Tax or Principal Additional Directors General of Central Tax,

(d) Commissioners of Central Tax or Additional or Additional Directors General of Central Tax,

(e) Additional Commissioner of Central Tax or Additional Directors of Central Tax,

(f) joint Commissioners of Central Tax or Joint Directors or Central Tax,

(g) Deputy Commissions of Central Tax or Deputy Directors of Cental Tax,

(h) Assistant Commissioners of Central Tax or Assistant Directors of Central Tax, and (I) any other class of officers as it may deem fit:

Provided that the officers appointed under the Central Excise Act, 1944 (1 to 1944) shall be deemed to be the officers appointed under the provisions of this Act,

Section 4. Appointment of Officers.

(1) The Board may, in addition to the officers as may be notified by the Government under section 3, appoint such persons as it may think fit to be the officers under this Act.

(2) Without prejudice to the provisions of sub- section (1), the Board may, by order, authorize any officer referred to in clause (a) to (h) of section 3 to appoint officers of cental tax below the rank of Assistant Commissioner of central tax for the administration of this Act.

Section 5. Powers of officers under GST. 

(1) Subject to such conditions and Limitations as the Board may impose, an officer of central tax may exercise the powers and discharge the duties conferred or imposed on him under this Act.

(2) An officer of cental tax may exercise the powers and discharge the duties conferred or imposed under this Act on any on any other officer of central tax who is subordinate to him.

(3) The Commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to any other officer who is subordinate to him.

(4) Notwithstanding anything contained in this section, an Appellate Authority shall not exercise the powers ad discharge the duties conferred or imposed on any other officer of central tax.

Section 6. Authorization of officers of

State tax or Union territory tax as proper officer in certain circumstances. 

(1) Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act, or the Union Territory Goods and Services Tax Act are authorized to be proper officers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify.

(2) Subject to the conditions specified in the notification issued under sub-section (1), -

(a) where any proper officer issues an order under this Act, h shall also issue an order under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorized by the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, under intimation to the jurisdictional officer of State tax or Union territory tax;

(b) where a proper officer under the Sate Goods and services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter

(3) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act shall not lie before an officer appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.

Section 7. Scope of supply. -

(1) For the purposes of this Act, the expression-"supply "includes-

(a) all forms of supply of goods or services or both 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.

(a1) the activities or transactions, by a person, other than an individual, to its members or constituents or vice- versa, for cash, deferred payment or other valuable consideration.

Explanation: - For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or odder of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;

(b) import of services for a consideration whether or not in their course or furtherance of business and

(c) the activities specified in Schedule I, made or agreed to be made without a consideration 3[****] 

(d) 4[****]

5[(IA) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (I), they shall be treated either as supply of goods or supply of services as referred to in Schedule-I]

(2) Notwithstanding anything contained in sub-section(I), -

(a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local Authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,

Shall be treated neither as a supply of goods nor a supply of services.

(3) Subject to the provisions of 6[sub-section (I), (IA) and (2)], the Government may, on the recommendations of the 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.

(b) a supply of services and not as supply of goods

Section 8. Tax liability on composite and mixed supplies. -

The Tax liability on a composite or a mixed supply shall be determined in the following manner, namely: -

(a) a composite supply comprising two or more supplies, one 0f which is a principal supply, shall be treated as a supply of such principal supply'; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.

Section 9. Levy and collection. -

(1) Subject to the provisions of sub-section (2), there shall be levied a tax Calles the central goods and services tax on intra-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption 2[ and un-denatured extra Neutra alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption], on the value determined under section I 5 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

(4) 1[The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both ]

(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, ant all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services;

Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax.

Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax.

Section 10. Composition levy. -

(1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in  the preceding financial year did not exceed fifty lakh rupees, may opt to pay, 1[in lieu of the tax payable by him under sub-section(1) of section9, an amount of tax calculated at such rate] as may be prescribed, but not exceeding,-

(a) one percent of the turnover in State or turnover in Union territory in case of a manufacturer.

(b) two and a half percent of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and 

(c) half percent of the turnover in State or turnover in Union territory in case of other suppliers, subject to such conditions and restrictions as may be prescribed:

Provided that the Government may, by notification, increase the said limit of fifty lakh rupee to such higher amount, not exceeding 2[one crore and fifty lakh rupees], as may be recommended by the Council:

3[Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ren percent of turnover in a state or Union territory in the preceding financial year or five lakh rupees, whichever is higher] 

4[Explanation. - For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loan or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for deterring the value of turnover in a State or Union territory].

(2)  The registered person shall be eligible to opt under sub-section (1) if: -

5[(a) save as provided in sub-section (1), he is not engaged in the supply of services] 

(b) he is not engaged in making any supply of 12[****] 6[services] which are not leviable to tax under this Act.

(c) he is not engaged in making any inter-state outward supplies of goods 7[or services];

(d) he is not engaged in making any supply of goods 8[or services] through an electronic commerce operator who is required to collect tax at source under section 52; 9[****]

(e) he is not a manufacture of such goods as may be notified by the Government on the recommendations of the 10[Council; and]

11[(f) he is neither a casual taxable person nor a non-resident taxable person:]

Provided that where more than one registered person are having the same permanent Account Number issued under the Income tax Act, 1961 (43 of 1961), the registered person shall not be eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this sub-section]

(3) The option availed of by a registered person under sub-section (1) 11[or subsection (2A), as the case may be,] shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub- section (1) 11[or sub-section (2A), as the case may be.]

(4) A taxable person to whom the provisions of sub-section (1) 11[or, as the case may be, sub-section (2A)] apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax

(5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1) 11[or sub-section (2A), as the case may be,] despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 14[or section74A] shall, mutatis mutandis, apply for determination of tax and penalty.

11[ Explanation 1.- For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression " aggregate turnover" shall include the value of supplies made by such person from the 1st days  of April of financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advance in so far as the consideration is represented by way of interest or discount.

Explanation 2.- For the purposes of determining the tax payable by a person under this section, the expression" turnover in State or turnover in Union territory " shall not include the value of following supplies, namely: -

(i) supplies from the first day of April of a financial year up to the date when such person becomes liable for registration under this Act; and

(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]

Section 11. Power to grant Exemption. 

(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description form the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.

(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.

(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1)  or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section(2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

Explanation. - For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both.

1[Section 11A. Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice. -

Notwithstanding anything contained in this Act, if the Government is satisfied that

 (a) a practice was, or is, generally prevalent regarding levy of central tax (including non-levy thereof) on any supply of goods or services or both; and

(b) such supplies were, or are, liable to, ----------------------------------------------

(i) central tax. in case where according to the said practice, central tax was not, or is not being, levied, or

(ii) a higher amount of central tax than what was, or is being, levied, in accordance with the said practice,

The Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the central tax payable on such supplies, or , as the case may be, the cental tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the central tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.]

Section 12. Time of supply of Goods. 

(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of goods shall be the earlier of the following dates, namely: -

(a) the date of issue of invoice by the supplier or the last date on which he is required, under 1[****] section 31, to issue the invoice with respect to the supply; or

(b) the date on which the supplier receives the payment with respect to the supply:

Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect to such excess amount.

Explanation 1.- For the purposes of clauses (a) and (b), " supply" shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.

Explanation 2.- For the purposes of clause (b), " the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dated, namely: -

(a) the date of the receipt of goods; or 

(b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

(4) In case of supply of vouchers by a supplier, the time of supply shall be -

(a) the date of issue of voucher, if the supply is identifiable at that point; or

(b) the date of redemption of voucher, in all the cases.

(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall-

(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or

(b) in any other case, be the date on which the tax is paid.

(6) The time of supply to the extent it related to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

Section 13. Time of Supply of Services. -

(1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of services shall be the earliest of the following dates, namely 

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under 1[****] section 31 or the date of receipt of payment, whichever is earlier; or

(b) the date of provision of services, if the invoice is not issued within the period prescribed under 1[****] section 31 or the date of receipt of payment, whichever is earlier; or

(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not: apply

Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.

Explanation - For the purposes of clause (a) and (b) --------------------------

(i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.

(ii) " the date of receipt of payment" shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of  the following dates, namely:-

(a) the date of payment as entered in the books of account of the recipient or the date on which the pay payment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date of issued of invoice or any other document, by whatever name called, in lieu thereof 2[by the supplier, in cases where invoice is required to be issued by the supplier; or]:

3[(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient:]

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) 3[or clause (c)], the time of supply shall be the date of entry in the books of account of the recipient of supply:

Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.

(4) In case of supply of voucher by a supplier, the time of supply shall be

(a) the date of issue of voucher, if the supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases.

(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall-

(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or

(b) in any other case, be the date on which tax tax is paid.

(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

*Section 14. Charge in rate of tax in respect of supply of goods or services

Notwithstanding anything contained in section 12 or section13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely: -

(a) in case the goods or services or both have been supplied before the change in rate of tax, -

(i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier: or

(ii) where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or

(iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment.

(b) in case the goods or services or both have been supplied after the change in rate of tax, -

(i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or

(ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or

(iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of invoice:

Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax.

Explanation. - For the purposes of this section, " the date of receipt of payment" shall be the date on which the payment is entered in the books al account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.

GST Section 1 & Section 2 Explained: Basics, Key Definitions, and Examples

THE CENTRAL GOODS & SERVICES TAX ACT, (2017)

Section (1) - Extent, Short title & Commencement. -

(1) It shall come into force on such date as the Central Government, by notification in the official Gazette, appoint:
(2) This Act may be called the Central Goods and Services Tax Act, 2017.

(3) It extends to the whole of India 

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

Section (2) - Definitions. - In this Act, unless the context otherwise requires, --------------------------------------------------------

(1) "actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882)

(2) "address of delivery" means the address of the recipient of goods or services, or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both.

(3) "address on record" means the address of the recipient as available in the records of the supplier.

(4) "adjudicating authority" means any authority, appointed or authorized to pass any order or decision under this Act, but does not include the 3 [Central Board of Indirect Taxes and Customs], the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for advance Ruling, 4[the National Appellate Authority for Advance Ruling,] 5[the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171];

(5) "agent" means a person, including a factor, broker, commission agent, Arratia, 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 or both on behalf of another.

(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

(7) "agriculturist" means an individual or a Hindu Undivided Family who undertakes cultivation of land 

(a) by own Labour, or

(b) by the Labour of family, or

(c) by servants on wages payable in cash or kind or by hired lab our personal supervision or the personal supervision of any member of the family:

(8) "Appellate Authority" means an authority appointed or authorized to hear appeals a referred to in section 107.

(9) "Appellate Tribunal" means the Goods and Services Tax Appellate Tribunal constituted under section 109.

(10) "appointed day" means the date on which the provisions of this Act shall come into force.

(11) "assessment" means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment:

(12) "associated enterprises" shall have the same meaning as assigned to it in section 92A of the Income-tax Act, 1961 (43 of 1961)

(13) "audit" means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provision of this Act or the rules made thereunder;

(14) "authorized bank" shall mean a bank, or a branch of a bank authorized by the Government to collect the tax or any other amount payable under This Act. 

(15) "authorized representative" means the representative as referred to in section 116;

(16) "Board" means the 6[Central Board of Indirect Taxes and Customs] constituted under the Central Board or Revenue Act, 1963 (54 of 1963);

(17) "business" includes -

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit:

(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a):

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction.

(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business.

(e) provision by a club, association, Society, or any such body (for a subscription or any other consideration of the facilities or benefits to its members.

(f) admission, for a consideration, of persons to any premises.

(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation:

(h) 7[ activities of a race club including by way of totalizator or a license to book maker or activities of a licensed book maker in such club: and]

(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.

(18) [@@@@].

(19) "capital goods" means goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

(20) "casual taxable person" means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a Union territory where he has no fixed place of business.

(21) "central tax" means the central goods and services tax levied under section 9.

(22) "cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act.

(23) "Commissioner" means the Commissioner of central tax and includes the principal commissioner of central tax appointed under section 3 and the Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act.

(24) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949).

(25) "Commissioner in the Board" means the Commissioner referred to in section 168.

(26) "common portal" means the common goods and services tax electronic portal referred to in section 146.

(27) "common working days" in respect of a State or Union territory shall mean such days in succession which are not declared as gazette holidays by the Central Government or the concerned State or Union territory Government

(28) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980);

(29) "competent authority" means such authority as may be notified by the government

(30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or anu 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

Illustration. - Where goods are packed and transported with insurance, the supply of goods packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.

(31) "consideration" in relation to the supply of goods or services or both includes-

(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement o, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a state Government.

(b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government.

Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

(32) "continuous supply of goods" means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may subject to such conditions, as it may, by notification, specify;

(33) "continuous supply of services" means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.

(34) "conveyance" includes a vessel, an aircraft and a vehicle.

(35) "cost accountant" means a cost accountant as defined in 9[clauses (b)] of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959(23 of 1959).

(36) "Council" means the Goods and Services Tax Council established under article 279A of the Constitution.

(37) "credit note" means a document issued by a registered person under subsection (1) of section 34.

(38) "debit note" means a document issued by a registered person under subsection (3) of section 34.

(39) "deemed exports" means such supplies of goods as may be notified under section 147.

(40) "designated authority" means such authority as may be notified by the Board. 

(41) "document" includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000 (21 to 2000). 

(42) "drawback" in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.

(43) "electronic cash ledger" mean the electronic cash ledger referred to in sub-section (1) of section 49.

(44) "electronic commerce" means the supply of goods or services or both, including digital products over digital or electronic network.

(45) " electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

(46) "electronic credit ledger" means the electronic credit ledger referred to in sub-section (2) of section 49.

(47) "exempt supply" means supply of any goods or services or both which attracts nil rate of tax, or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act and includes non-taxable supply.

(48) "existing law" means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this Act by Parliament or any Authority or person having the power to make such law, notification, order, rule or regulation.

(49) "family" means, (i) the spouse and children of the person, and (ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person.

(50) "fixed establishment" means a place (other than the registered place of business) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs.

(51) "Fund" means the Consumer Welfare fund established under section 57;

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

(53) "Government" means the Central Government.

(54) "Goods and Services Tax (Compensation to States) Act" means the Goods and Services Tax (Compensation to States) Act, 2017.

(55) "goods and services tax practitioner" means any person who has been approved under section 48 to act as such practitioner. 

(56) "India" means the territory of India as referred to in article 1 of the Constitution, its territorial water, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976(80 of 1976), and the air space above its territory and territorial waters;

(57) "Integrated Goods and Services Tax Act" means the Integrated Goods and Services Tax Act, 2017

(58)  "integrated tax" means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act.

(59) "input" means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.

(60) "input services" means any service used or intended to be used by a supplier in the course or furtherance of business.

(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable or services or both having the same Permanent Account Number as that of the said office;

(62) "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services, or both made to him and includes-

(a) the integrated goods and services tax charged on import of goods.

(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9.

(c) the tax payable under the provisions of sub-sections (3) and (4) of suction 5 of the integrated Goods and Services Tax Act.

(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and services Tax; or

(e) the tax payable under the provisions of sub-section (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act,

But does not include the tax paid under the composition levy.

(63) "input tax credit" means the credit of input tax.

(64) "intra-State supply of goods" shall have the same meaning as assigned to it in section 8 of the INTEGRATED goods AND services Tax Act.

(65) "intra-State supply of services" shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act.

(66) "invoice" or "tax invoice" means the tax invoice referred to in section 31:

(67) "inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or another means with or without consideration:

(68) "Job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression " job worked" shall be construed accordingly.

(69) "local authority" means-

(a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution.

(b) a "Municipality" as defined in clause (e) of article 243P of the Constitution.

(c) a Municipal Committee, a Zilla parishad, a District Board and any other authority legally entitled to or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund.

(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006)

(e) a Regional Council or a District Council Constituted under the Sixth Schedule to the Constitution.

(f) a Development Board constituted under article 371 [and article 371J] of the Constitution; or 

(g) a Regional Council constituted under article 371A of the Constitution.

(70) "location of the recipient of services" means, -

(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business.

(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment.

(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the 

(d) in absence of such places, the location of the usual place of residence of the recipient.

(71) "location of the supplier of services" means, -

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business

(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment.

(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and

(d) in absence of such place, the location of the usual place of residence of the supplier.

(72) "manufacture" means processing of raw material or inputs in anu manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly"

(73) "market value" shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related.

(74) "mixed supply" means 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.

Illustration. - A supply of package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply.  Each of these items can be supplied separately and is not dependent on any other . It shall not be a mixed supply if these items are supplied separately.

(75) "money" means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange. letter of credit, draft, pay order, Traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value.

(76) "motor vehicle" shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988)

(77) "non-resident taxable person" means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

(78) "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act.

(79) "non-taxable territory" means the territory which is outside the taxable territory.

(80) "notification" means a notification published in the official Gazette and the expressions "notify" and "notified" shall be construed accordingly.

(a) "online gaming" means offering of a game on the internet or an electronic network and includes online money gaming:

(b) "online money gaming" means online gaming in which players pay or deposit money or money's worth, including virtual digital assets, in the expectation of winning money or money's worth, including virtual digital assets, in any event including game, scheme competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force

(81) "other territory" includes territories other than those comprising in a state and those referred to in sub- clauses (a) to (e) of clause (114);

(82) "output tax" in relation to a taxable person, means the tax chargeable under this Act on payable by him on reverse charge basis.

(83) "outward supply" in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange,licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.

(84) "person" includes- (a) an individual (b) a Hindu Undivided Family (c) a company (d) a firm (e) a Limited Liability Partnership (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside (g) any corporation established by or under under any Central Act, State Act, or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);(h) anybody corporate incorporated by or under the laws of a country outside India (I) a co-operative society registered under any law relating to co-operative societies (j) a local authority (k) Central Government or a State Government (l) society as defined under the Societies Registration Act, 1860 (21 of 1860) (m) trust and (n) every artificial juridical person, not falling within any of the above;

(85) "place of business" includes-

(a) a place from where the business is ordinaryily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or

(b) a place where a taxable person maintains his books of account: or

(c) a place where a taxable person is engaged in business through an agent, by whatever name called.

(86) "place of supply" means the place of supply as referred of the Integrated Goods and Services Tax Act.

(87) "prescribed" means prescribed by rules made under this Act on the recommendations of the Council.

(88) "principal" means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both.

(89)"principal place of business" means the place of business specified as the principal place of business in the certificate of registration.

(90) "principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

(91) "proper officer" in relation to any function to be performed under this Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board.

(92) "quarter" shall mean a period comprising three consecutive months, ending on the last day of March, June, September and December of a calendar year.

(93)  "recipient" of supply of goods or services or both, means - (a) where a consideration is payable of goods or services or both, the person who is liable to pay that consideration.

(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and

(c) where no consideration is payable for the supply of a services, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplies.

(94) "registered person" means a person who is registered under section 25 but does not include a person having a Unique identity Number.

(95) "regulations" means the regulations made by the Board under this Act on the recommendations of the Council.

(96) "removal" in relation to goods, means- (a) dispatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or (b)

(97) "return" means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder.

(98) "reverse charge" means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section9 or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.

(99) "Revisional Authority" means an authority appointed or authorized for revision of decision or order as referred to in section 108.

(100) "Schedule" means a Schedule appended to this Act.

(101) "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 to 1956

(102) "service" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, form currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

(102A) "specified actionable claim" means the actionable claim involved in or by way of-----------------------------------------------------------------------------

Betting, Casinos, Gambling, Horse racing, online money gaming & lottery

(103) "State "includes a Union territory with Legislature.

(104) "State tax" means the tax levied under any State Goods and Services Tax Act.

(105 "supplier" in relation to anu goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

[Provided that a person who organizes or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims']

(106) " tax period" means the period for which the return is required to be furnished.

(107) "taxable person" means a person who is registered or liable to be registered under section 22 or section 24

(108) taxable supply - means a supply of goods or services or both which is leviable to tax under this Act.

(109) taxable territory - means the territory to which the provisions of this Act apply.

(110) telecommunication service - means service of any description (including electronic mail , voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means.

(111) the State Goods and Services Tax Act - means the respective state Goods and Services Tax Act, 2017

(112) turnover in State - "turnover in Union territory" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a state or Union territory by a taxable person, exports of goods or services or Bothe and inter-state supplies of goods or services or both made from the State or Union territory by the said taxable person but exclude central tax, State tax, Union territory tax, integrated tax and cess.

(113) "usual place of residence - means (a) in case of an individual, the place where he ordinarily resides. (b) in other cases, the place where the person is incorporated or otherwise legally constituted.

(114) Union territory - means the territory of 

(a) other territory (b) Ladakh (c) the Andaman and Nicobar Islands (d) Chandigarh and Dadar and Nagar haveli and Daman and Diu

Explanation- For the purposes of this Act, each of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory

(115) "Union territory tax - means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act.

(116) " Union Territory Goods and Services Tax Act" means the Territory Good

(117) "valid return" means a return furnished dunder sub-section (1) of section 39 on which self-assessed tax has been paid in full.

(118) Virtual digital asset - shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax 1961

NEW UPDATES OF GST RATE

 GST RATE RATIONALISATION AFTER ITEM-WISE ANALYSIS

New Delhi: Rationalization of GST rates may be some time away, but assessment has begun in the background to assess possible and avoid inverted duty structure in several segments where the duty on the final product is lower than the tax on inputs.

While industry has demanded that rationalization, which will mean reworking of rtes. of various goods and services and also merging the four slabs on three, govt is no going to rush into any such exercise without a detailed analysis. A group of ministers had earlier looked at the issued but a decision on it has been pending for several months.

The broad assessment among industry players is that 12% and 18% slabs will be merged and a new 15-16% rate could emerge as the mid-rate, along with the 5% and 28% slab, given that several items will see an upward movement from the 12% slab, a political call needs to be taken. In fact, a few years ago some internal exercise had also been done in the finance ministry but covid had upset all the calculations. Whenever the rate changes take place, which could be several months away, govt wants to avoid a situation where it is accused of being anti-consumer, while also ensuring that the exercise is revenue neutral to the extent possible.

As a result, a very preliminary internal assessment is being done to see how a change in the rate of items in these segments would impact revenue flow, especially when the weighted average rate worked out to11.6% according to an analysis done by RBI a few years ago, against the proposed revenue neutral rate of 15-15.5 when GST was launched almost seven years ago.

But there is growing demand, and to an extent even realization within a section of govt, that the rates on several items, such as insurance or telecom services should not be 18%, but lower. Or, for that matter even cement should not be in the 28% bracket, given that it is used for construction, which has been a key demand of the industry. But before item-wise rates are discussion, finance ministers from the states and the Centre need to take a call to move ahead with rationalization.

GST Rates in India 2024 New updates

GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises the Goods and Services Tax (GST) rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this Chage.

GST rates list highlights for the year 2024 all the recent Chages & updates of GST rates after the 54th GST Council meeting.

Meaning of GST Rates

Every business registered under GST must raise invoices with GST amounts charged on the supply value. These GST amounts are derived as a percentage value of taxable amounts. Such as percentage rate used is called the GST rate. For instance, GST of Rs. 1,200 charged on taxable value of Rs. 10,000 arrived by multiplying 12% GST rate with Rs. 10,000

Therefore, GST rate is a percentage rate of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts.

CGST GST rate and SGST GST rate would both behalf of IGST GST rate. In other words, the GST rate in CGST and SGST (For intrastate transactions) are approximately the same. Whereas the GST rate in the case of IGST (For interstate transactions) is approximately the sum total of CGST and SST rate

Types of GST Rates and GST Rate structure in India

The primary GST slabs for anu regular taxpayers are presently pegged at o%(nil-rated), 5%,12%,18% & 28 %. There is a new lesser-used GST rate such as 3% and 0.25%

Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5 or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 0.5% respectively (prior to 9th July 2024, it was 1%)

Further, the GST law levies cess in addition to the above GST rates on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%

The GST rate structure for some of the commonly used consumable products is given in the below table. For more items, type in the item you wish to know the GST rate of by visiting our HSN code & GST rates finder

LIST OF GST ITEMS @ 0%

Milk, Kajal, Eggs, Educational Services, Curd, Lassi, Health Services, Children's Drawing & Colouring Books, Unpacked Foodgrains, Unbranded Atta/Maida, Unpacked Paneer, Gur, Beasn, Unbranded Natural Honey, Fresh Vegetables, Salt, Prasad, Palmyra Jaggery, Phool Bhari Jhadoo etc. 

LIST OF GST ITEMS @ 5%

Sugar, packed paneer, Tea, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (<Rs.500), Milk Food for Babies, Apparels (< Rs.1000) Fabric, Coir Mats, Coffee (except instant), Mishti/Mithai (Indian Sweets), Life-saving drugs, Agar Batti & Matting & Floor covering spices.

LIST OF GST ITEMS @ 12%

Nuts or other parts of Plants, including pickle Murabba, Fruit Juice, Preparations of Vegetables, Fruits, Chutney, Jam, Jelly, Packed Coconut Water, Umbrella, Butter, Ghee, Processed food, Mobiles & Almonds.

LIST OF GST ITEMS @ 18%

Hair Oil, Capital Goods, Toothpaste, industrial Intermediaries, Soap, ice-cream, Pasta, Toiletries, Corn, Flakes, Soups, Printers & Computers.

LIST OF GST ITEMS @ 28%

Small cars, High-end motorcycles, Consumer durables such an AC and fridge, Luxury & sin items like BMWs, Cigarettes and aerated drinks.