GST Bill Summary – 2016

GST bill summary

GST Bill Summary

GST is taking pace in the parliament, BJP govt is hopeful of passing GST bill in the monsoon session of parliament starting from Monday, 18th July’16. When it going to become act it is necessary to understand some key provisions of draft GST bill. So here we present GST bill summary.

Taxable Person as per draft GST Bill


Taxable Person means a person who carries on any business at. any place in India and who is registered or required to be registered under this Act.

  • Agriculturist shall not be considered as a taxable person.
  • A person shall not be considered as a taxable person until his aggregate turnover in a financial year exceeds Rs. 10 Lacs.
  • A person shall not be considered as a taxable person until his aggregate turnover in a financial year exceeds Rs. 5 Lacs, if such taxable person conducts his business in any of the NE States including Sikkim.

Composition Levy


GST bill provides provision for the composition scheme, as per GST bill registered taxable person, whose aggregate turnover in a financial year does not exceed Rs.50 Lacs, may pay tax at a lump sum rate of one percent of the turnover during the year with following conditions:

  • Provided that such taxable person shall not enter in to any inter-State supplies of goods and/or services.
  • A taxable person opting for composition scheme shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.

Time and value of Supply


The liability to pay CGST / IGST shall arise at the supply of goods or services as determined in terms of provisions of this act.

The time of supply of goods shall be earliest of the following: 

  • The date on which the goods are removed by the supplier for supply to the recipient, in a case where the goods are required to be removed ; or
  • The date on which the goods are made available to the recipient, in a case where the goods are not required to be removed; or
  • The date on which the supplier issues the invoice with respect to the supply; or
  • The date on which the supplier receives the payment with respect to the supply; or
  • The date on which the recipient shows the receipt of the goods in his books of account.

Valuation of Taxable supply


The value of a supply of goods and/or services shall be the transaction value, that is the price actually paid or payable for the said supply of goods and/or services where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

Transaction value shall include any amount that the supplier is liable to pay in relation to such supply, value as apportioned for goods supplied free of cost, royalties, incidental expenses, subsidies, any reimbursable expenses any other taxes other than the SGST Act or the CGST Act or the IGST Act etc.

Input tax credit


Every registered taxable person shall be entitled to take credit of input tax admissible to him and the said amount shall be credited to the electronic credit ledger of such person.

Time period of 1 year is provided for availing the credit, credit needs to be taken by the end of month September following the end of financial year to which credit pertains.

Special provisions for casual taxable person and non resident taxable person


Casual taxable person means 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.

Registration certificate granted to such person shall be valid for period of Ninety days from the date of registration, proper officer may extend the period by not more than ninety days.

A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration  make an advance deposit of tax in an amount equivalent to the estimated tax liability for the period for which the registration is sought.

Where any extension of time is sought,  such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability for such extended period.

The amount deposited under this clause shall be credited to the electronic cash ledger of such person. This amount can be utilized for payment of GST

Filing of Return in GST


Furnishing details of outward supplies

Every Taxable person has to file the return for outward supply before the 10th date of succeeding month. Return is to be filled electronically. Person has to communicate the details of return to recipient of goods. Here outward supply includes  details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/ in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the said tax period.

If there is any error in return, then it can revised up to the month of September following end of financial year to which return pertains or filing of annual return which ever is earlier.

Furnishing details of inward supplies

Every Taxable person has to file the return showing the details of inward supply before  the 15th date of succeeding month. In the same way as return of outward supply this return can be revised up to the month of September following end of financial year to which return pertains or filing of annual return which ever is earlier.

Furnishing of return

Every registered taxable person shall, for every calendar month , furnish a return, electronically, of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars as may be prescribed within twenty days after the end of such month.

A registered taxable person paying tax opted for composition scheme under the provisions of section 8 of this Act shall furnish a return for each quarter or part thereof, electronically, in such form and in such manner as may be prescribed, within eighteen days after the end of such quarter.

A registered taxable person shall not be allowed to furnish return for a tax period if valid return for any previous tax period has not been furnished by him.

A return furnished by a registered taxable person without payment of full tax due as per such return shall not be treated as a valid return.

Furnishing of annual return

Every registered taxable person, other than an input service distributor, a deductor under section 37, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in on or before the 31st December following the end of such financial year.

So , these are the key provisions of the GST bill summary we have presented, we hope it becomes useful to the professionals, tax payers and other stakeholders. Please give your opinion in comment box regarding GST bill summary.

Draft GST bill published by Ministry of finance

Author: smit shah

I am a passionate Chartered Accountant having deep interest in taxation with combination of blogging.

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