Free GST Updates 15th Mar!

Hello Friends, There are no updates in GST since yesterday, Lets continue to learn some key concepts and also discuss some critical issues in existing revised Model GST Law:

  1. Below are some issues which might hinder the industry expectations on GST implementation benefits:
    1. State entry level checks to continue in GST Era (So there doesn’t seem to support seamless flow of goods between states)
    2. There are some existing state level concessions which seems to vanish in GST Era, this would impact investments flow in those states having concessions (In existing case)
    3. Rates of tax on goods and services not yet clarified to the industry which would delay the implementation process

2. Lets understand the concept of Supply which would be the driving factor for levy of GST:

First of all the act  doesn’t defines the most critical term Supply, if only states what it includes, excludes, deemed as supply concepts. The explanations are given in Section 3 of the Model Law:

  1. Section 3(1)(a) :
    1. All forms of supply of goods and/ or services, – for a consideration- in the course or furtherance of business such as: sale, transfer, barter, exchange, license, rental, lease or disposal
  2. Section 3(1)(b)
    1. Importation of service,- for a consideration- whether or not in the course or furtherance of business
  3. Section 3(1)(c)
    1. Specified Supplies as per Schedule I*- To be treated as supplies made without a consideration*Schedule I:
      1. Permanent transfer/ disposal of business assets for which ITC availed
      2. Supplies between related persons/ distinct persons in the course or furtherance of business
      3. Supply of goods by principal (or agent) to agent (or principal)
      4. Importation of service from a related person or from any of his other establishments outside India, in the course or furtherance of business.

Broadly looking at the definition, we can categorize the definition of supply as:

  1. Included supplies
  2. Implied supplies (Sch I)
  3. Excluded supplies (Sch III & IV)

Hope you all have got some basics about GST in today’s blog. Do write us your valuable feedback. One more very interesting point, now learn key concepts across multiple categories like finance, accounts, income tax, World, Animals, Plants, Media and much more at below link for free. Enjoy!!

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