Highlights of Model GST LAW

1 Registration
The dealer is required to take registration under this law if his aggregate turnover in a
financial year exceeds Rs.9 lakhs. However, if the dealer is conducting business inNorth
Eastern State then,he is required to take registration if the turnover exceeds Rs.4 lakhs.
Following categories of persons are compulsorily required to get registered under this Act:

(i) Person making any inter-State taxable supply

(ii) Casual taxable person

(iii) Person who are required to pay tax under reverse charge

(iv) Non-resident taxable persons

(v) Person who are required to deduct tax at source

(vi) Person who supply goods and/or services as an agent

(vii) Input service distributor;

(viii) Persons who supply goods and/or services through E-commerce operator

(ix) Every E- commerce operator

(x) An aggregator of services

The dealer has to take registration in the State from where taxable goods or services are
supplied. A supplier has to obtain registration in every such State from where taxable
goods or services are supplied. Also, a person having multiple business verticals in the State
may obtain a separate registration for each business vertical
2 GST score card
Every taxable person shall be assigned a GST compliance rating score based on his record of
compliance with the provisions of this Act. The GST compliance rating score shall be
updated at periodic intervals and intimated to the taxable person and also placed in the public
domain.
3 Time of Supply
CGST/SGST shall be payable at the earliest of the following dates, namely:

Date on which the goods are removed for supply to the recipient

Date of issuing invoice by supplier; or

Date of receipt of payment by supplier; or

Date on which recipient shows the receipt of the goods in his books of account.

4 Taxable Event
The taxable event will be supply of goods or services. Supply includes all forms of supply of
goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal
made or agreed to be made for a consideration.
Deemed Supply:

Importation of service, whether or not for a consideration

Permanent transfer/disposal of business assets.

Temporary application of business assets to a private or non-business use.

Services put to a private use.

Assets retained after deregistration.

5 Valuation of supply
Valuation will be same for IGST/CGST/SGST, which aregiven below:
Transaction Value. Transaction value of goods or services of like kind: Where value of
supply cannot be determined under previous method, the value shall be determined on the
basis of transaction value of goods and/or services of like kind and quality supplied at or
about the same time to customers.
Computed Value Method: Where value cannot be determined under previous method, it
shall be based on computed value which shall include cost of production, manufacturing or
processing of the goods or, the cost of the provision of services.
Residual Method: In any other case the value shall be determined using reasonable means
consistent with the principles and general provisions of these Rules.
6 Utilization of credit:

Note: The input tax credit on account of CGST shall not be available for payment of SGST.
7 TDS
The Central orState Government may mandate certain departments (via, local authority, Govt.
agencies) to deduct tax at the rate of one percent on notified goods or services, where the total
value of such supply, under a contract, exceeds Rs 10 lakhs. Such that any refund of more
than Rs. 10 lakhs provided by the authorities will not be liable to TDS provisions. The
Deductee will be able to claim credit of the tax deducted and reflected in the return of the
deductor in his electronic cash ledger. Which means that this amount may be used for making
any payment towards tax, interest, penalty, fees or any other amount payable under the Act or
the rules
8 Refund
A person can claim refund of any tax interest and even input tax credit (prescribed cases) by
making an application to the prescribed officer of IGST/CGST/SGST before the expiry of 2
years from the relevant date as may be prescribed. It has been provided that the limitation of
two years shall not apply where such tax or interest or the amount has been paid under
protest. No documentary evidence is required to be furnished if the claim of refund is below
Rs. 5, 00,000.
9 Returns
Following returns are to be filed by various suppliers:

(a) First Return: Every registered taxable person paying CGST/SGST on all intraState supplies of goods and/or services shall have to furnish the first return from the
date on which he became liable to registration till the end of the month in which the
registration has been granted.

(b) Monthly Return: Every registered taxable person shall have to e-file a monthly
return for inward and outward supplies of goods and/or services, input tax credit
availed, tax payable, tax paid and other particulars within 20 days after the end of
such month.

(c) TDS Return: Every dealer who is required to deduct tax at source shall furnish a
return electronically within 10 days after the end of month in which such deduction is
made.

(d) Return for Input Service Distributor: Every Input Service Distributor shall file
e-return for every calendar month or part thereof, within 13 days after the end of such
month.

(e) Return for Composition Dealer: Dealers paying tax under composition scheme
shall have to furnish a return for each quarter or part thereof, electronically within 18
days after the end of such quarter.

(f) Annual return: Every registered taxable person shall have to furnish an annual
return for every financial year electronically on or before the 31st day of December
following the end of such financial year in which such supplies were made.

(g) Final return: Every registered taxable person who applies for cancellation of
registration shall have to furnish a final return within 3 months of The date of
cancellation or Date of cancellation order, Whichever is later

10 Special Audit When any officer, not below the rank of [Deputy/Assistant Commissioner]
is of the opinion that the value has not been correctly declared or the credit availed is not
within the normal limits, he may direct such taxable person by notice in writing to get his
records including books of account examined and audited by a chartered accountant or a cost
accountant.
11 Transitional Provisions

Every person already registered under existing law will be issued a certificate of
registration on a provisional basis. This certificate shall be valid for period of 6
months. Such person will have to furnish the requisite information within 6 months
and on furnishing of such information, final registration certificate shall be granted by
the Central/State Government.

A registered taxable person will be entitled to utilize CENVAT credit/Value Added

Tax carried forward in a return furnished by him in respect of the period ending with
the day immediately preceding the appointed day.

A registered taxable person shall be entitled to takecredit of the unavailed CENVAT

credit/input tax credit in respect of capital goods for the period ending with the day
immediately preceding the appointed day