Model GST Law

Presented by 
FCA. Puneet Goyal

• Finally Government succeeding in getting passed GST on 3rd August 2016 in Rajya Sabha.

The Constitution (122nd Amendment) Bill 2014 on GST as amended by Rajya Sabha on  3rd August 2016 passed in LOK Sabha on 08th August 2016.

The Constitution (122nd Amendment) Bill 2014 will be called The Constitution (101st Amendment) Act 2016 after getting assent of President of India.

After the ratification and the subsequent Presidential assent, a GST Council with the representatives from the Centre and States will be formed within 60 days of the enactment of the Bill.

After Assam became the first state to ratify the Constitution (122nd Amendment) Bill 2014 on GST, till today i.e. 23rd August 2016 six states ratified the Bill.

Other states had also decided tentative schedules for the ratification in their respective state assemblies.

The Government expects to complete the ratification process by the States within a month and expecting target implementation date 1st April 2017 for GST.

As per Clause 12 of The Constitution (122nd Amendment) Bill 2014, article 279A shall be inserted in Constitution of India and as per this article, The President shall, within 60 days from the date of commencement of The Constitution (101st Amendment) Act 2016, by order, constitute a council to be called Goods and Service Tax Council.

GST Council will have members from Centre and State Government .

GST Council will recommend to the Union and State on various issues like the taxes, cess etc. levied by Union, State and local bodies which may be subsummed in the GST, goods and service exempted from GST, threshold limits of turnover, the principle that govern the place of supply etc.

Please find below link at CBEC.GOV.IN website of Draft Model GST Law:

http://cbec.gov.in/resources//htdocs-cbec/deptt_offcr/model-gst-law.pdf

I hope above blog is useful for you. Your valuable feedback in respect of same would be highly appreciated.

(Disclaimer: The above analysis has been drafted as per various provisions of Constitution of India. The analysis may not be entirely correct for reader to reader due to different interpretations by different readers. The readers are advised to take into the consideration the prevailing legal position before acting on author’s view in caption blog. We shall not be responsible for any loss caused based on this interpretation.)

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ANALYSIS OF REVERSE CHARGE MECHANISM IN RESPECT OF MANPOWER SUPPLY SERVICES OR SECURITY SERVICES DATED 31.05.2015

Presented By 

FCA. Puneet Goyal

(Before proceeding further please read the disclaimer at the bottom of this write up)

As we all know that after introduction of negative list approach, in respect of above services, service tax is payable by both the service provider as well as services receiver. However it is not applicable in all cases.

Now along with Finance Act 2015 some changes has been made in respect RCM on manpower supply services or security services.

In this article we are trying to show position of service receiver and service provider after amendment in NN 30/2012 dated 20^th June, 2012 by NN 07/2015 dated 01/03/2015 w.e.f. 01/04/2015.

As per sub clause (v) of clause (I) of NN-30/2012 ST dated 20.06.2012 read with s.no. 8 of Table of NN-30/2012 ST dated 20.06.2012, we can conclude as under:

Service tax liability of Service Provider and Service Receiver up to 31/03/2015

TABLE SHOWING EXTENT OF SERVICE TAX PAYABLE BY SERVICE PROVIDER AND SERVICE RECIVER:

S. NO.	SERVICE PROVIDER	SERVIVE RECEIVER	EXTENT OF SERVICE TAX PAYABLE BY
			SERVICE PROVIDER	SERVICE RECEIVER
1	Any individual, HUF or partnership firm or association of persons	DO	100%	NIL
2	Any individual, HUF or partnership firm or association of persons	Body Corporate	25%	75%
3	Body Corporate	Any individual, HUF or partnership firm or association of persons	100%	NIL
4	Body Corporate	Body Corporate	100%	NIL

Thus it is clear from above table that only in one case 75% service tax is payable by service receiver and not in all cases i.e. when service provider is any individual etc and service receiver is body corporate.

Service tax liability of Service Provider and Service Receiver WEF 01/04/2015

S. NO.	SERVICE PROVIDER	SERVIVE RECEIVER	EXTENT OF SERVICE TAX PAYABLE BY
			SERVICE PROVIDER	SERVICE RECEIVER
1	Any individual, HUF or partnership firm or association of persons	DO	100%	NIL
2	Any individual, HUF or partnership firm or association of persons	Body Corporate	0%	100%
3	Body Corporate	Any individual, HUF or partnership firm or association of persons	100%	NIL
4	Body Corporate	Body Corporate	100%	NIL

Thus it is clear from above table that only in one case 100% service tax is payable by service receiver and not in all cases i.e. when service provider is any individual etc and service receiver is body corporate.

RELEVANT DEFINITIONS

1.       “supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’

2.      "security services" means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity;"

I hope above blog is useful for you. Your valuable feedback in respect of same would be highly appreciated.

(Disclaimer: The above analysis has been drafted as per various provisions of Finance Act 1994, and notifications and circulars issued thereunder. The analysis may not be entirely correct for reader to reader due to different interpretations by different readers. The readers are advised to take into the consideration the prevailing legal position before acting on author’s view in caption article. We shall not be responsible for any loss caused based on this interpretation.)

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