Chart 1 - Intro Flashcards
Definition of Tax
-A compulsory payment
-under an act
-to government
-to provide public service
Definition of GST
Article 366:
-GST means any Tax
-on supply of goods or services or both
-except supply of alcoholic liquor for human consumption
D/B Direct tax and indirect tax
- DT- Imposed on tax payer. IDT- Imposed on Goods and services
- DT- Burden is on the person tax is Imposed. IDT- Burden is shifted to ultimate consumer
- DT- Progressive in nature. IDT- Regressive in nature.
- Eg: DT- Income tax. IDT: GST & Customs
GST- Deficiencies in existing Tax system
- Cascading effect
- No cenvat credit to dealers/traders
- Double taxation due to non integration of VAT & Service Tax
- Several taxes were not subsumed.
Benefits of GST
- creation of unified national market
- Boost to make in- India initiative
- Enhanced investment and employment
- Mitigation of ill effects of cascading
- ease of doing business
- reduction in compliance cost
- Automated process with greater use of IT
- Elimination of multiple taxes and double taxation
- Benefits to small traders and entrepreneurs
various features of GST
- It is a tax on supply of good and services
- it is a consumption tax
- it is a destination based tax
- it is a value added tax
central taxes subsumed - GST
- central excise duty
- service tax
- CVD & Special CVD
- Central sales tax
- surcharges & cess
State taxes subsumed-GST
- state surcharges & cess
- entertainment tax except ET levied by local bodies
- tax on lottery, betting and gambling
- entry tax, purchase tax
Taxes not subsumed - GST
- Basic custom duty
- Entertainment tax levied by local bodies
- property tax and stamp duty
- electricity duty
- state excise duty on alcoholic liquor for human consumption
- central excise duty on HPMAN
Dual model of GST
India has adopted dual model of GST which is Imposed concurrently by the centre and state.
GST levied by centre : CGST
GST levied by state: SGST/ UTGST
Now centre has power to tax intrastate and states empowered to tax services.
India has adopted GST model from Canada.
states and UT that are states
28 states 8 union territories
8 UT -> 3+5
3= Delhi, pondicherry, Jammu & Kashmir
28+3 = 31 states
Chapters 1,2 sections of CGST Act, 2017
CHAPTER I – PRELIMINARY
Section 1–Short title, extent and commencement
Section 2–Definitions
CHAPTER II – ADMINISTRATION
Section 3–Officers under this Act
Section 4–Appointment of officers
Section 5–Powers of officers
Section 6–Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances
Chapter 3, 4 Sections of CGST Act, 2017
CHAPTER III – LEVY AND COLLECTION OF TAX
Section 7–Scope of supply
Section 8–Tax liability on composite and mixed supplies
Section 9–Levy and collection
Section 10–Composition levy
Section 11–Power to grant exemption from tax
CHAPTER IV – TIME AND VALUE OF SUPPLY
Section 12–Time of supply of goods
Section 13–Time of supply of services.
Section 14–Change in rate of tax in respect of supply of goods or services
Section 15–Value of Taxable Supply
Chapter 5 Sections of CGST Act, 2017
CHAPTER V – INPUT TAX CREDIT
Section 16–Eligibility and conditions for taking input tax credit
Section 17–Apportionment of credit and blocked credits.
Section 18–Availability of credit in special circumstances
Section 19–Taking input tax credit in respect of inputs and capital goods sent for job work
Section 20–Manner of distribution of credit by Input Service Distributor
Section 21–Manner of recovery of credit distributed in excess.
Chapter 6, Sections of CGST Act, 2017
CHAPTER VI – REGISTRATION
Section 22–Persons liable for registration
Section 23–Persons not liable for registration.
Section 24–Compulsory registration in certain cases.
Section 25–Procedure for registration
Section 26–Deemed registration
Section 27–Special provisions relating to casual taxable person and non-resident taxable person
Section 28–Amendment of registration.
Section 29–Cancellation of registration
Section 30–Revocation of cancellation of registration
