Common Provisions of CGST, SGST, IGST and UTGST – Full Analysis

Common Provisions of CGST, SGST, IGST and UTGST. GST roll out on July 1, 2017, evidenced the stepping stone toward accomplishing a goal of One Nation – One Tax – One Market. The registration of masses under GST will facilitate the first step towards smooth implementation of GST thereby realizing benefits of uniformity of taxes, seamless credit to some extent reducing the cascading effect. from this article you may check list of all Common Provisions of CGST, SGST, IGST and UTGST acts 2017….

Common Provisions of CGST, SGST, IGST AND UTGST

Provisions of CGST and SGST

Article 265 of the Constitution of India mandates that no tax shall be levied or collected except, with the authority of law. Charging Section is a must in any taxing statute for the purpose of levy and collection of tax.

The Centre will levy and collect the Central GST and State will levy and collect the State GST on supply of goods and services within the State. (Section 9 of the CGST/SGST Act)

The CGST Act is applicable to the whole of India except the State of Jammu & Kashmir whereas SGST Act is applicable to whole of a specified state.(Section 1(2) of CGST/SGST Act). Therefore, there is one CGST Act and 31 SGST Acts for each of the 29 states, Delhi and Puducherry.

The officers appointed under CGST Act are authorized to be the proper officers for the purposes of this Act. Whereas officers appointed under SGST Act are authorized to be the proper officers for the purposes of SGST Act (Section 3 of CGST/SGST).

Section 4 of the IGST Act provides that without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such exceptions and conditions as the Government shall, on the recommendations of the Council, by notification, specify.

Section 174 of the CGST Act repeals all the Central levies under the previous law viz, the Central Excise Act, 1944 (except as respects goods included in entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, the Additional Duties of Excise (Goods of Special Importance) Act, 1957, the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, and the Central Excise Tariff Act, 1985

Section 174 of the SGST Act repeals all the State levies under the previous laws viz, the State VAT Act, the State Entry tax Act, the State Amusement and Betting Tax Act, State Luxury Tax, State Health Infrastructure & Services Development fund Act and any other State levies as may be provided under the section.

Section 173 of the CGST Act omits Chapter V of the Finance Act 1994, while Section 173 of the SGST Act omits / amends various state levies w.r.t octroi, entry tax, amusement and entertainment tax and other State levies that are subsumed under GST.

The Transitional Provisions under Chapter XX shows additional requirement under SGST Act compared to CGST Act.

Section 140(1) of CGST Act entitles to take in the electronic credit ledger, credit of the amount of CENVAT credit as carried forward in the return furnished under earlier law, relating to the period ending with the day immediately preceding the appointed day. The CENVAT credit shall be admissible as CGST tax.

Section 140(1) of the SGST Act allows entitles to take in the electronic credit ledger, credit of the amount of VAT, as carried forward in the return furnished under earlier law, relating to the period ending with the day immediately preceding the appointed day. The VAT credit shall be admissible as SGST tax.

The second provisio to Section 140(1) of the SGST Act so much of the said credit as is attributable to any claim related to section 3, 5(3), 6, 6A and 8(8) of the CST Act, 1956 which is not substantiated in the manner, and within the period prescribed in rule 12 of the CST(Registration and Turnover) Rules, 1957 shall not be eligible to be credited to the electronic credit ledger. Thus in case of inter-state sale, if CST Forms like, Form C,F,H,E1,E2 are not received by the seller within the prescribed time of 3 months as stipulated in Rule 12 of the CST rules, credit equal to difference between state VAT on that item and CST paid will not be available for carry forward.

The third provisio to Section 140(1) of the SGST Act provides that an amount equivalent to the credit specified in the second provisio shall be refunded under the existing law when the said claims are substantiated in the manner prescribed in rule 12 of the CST (Registration and Turnover) Rules, 1957. Thus when the claim is substantiated, the amount will be refunded to the taxable person.

Besides the above, all the provisions of CGST Act and SGST Act are alike.

B. COMMON PROVISIONS OF CGST AND IGST

The following provisions of the Central Goods and Services Tax Act, shall, mutatis mutandis, apply to Integrated tax as they apply in relation to Central tax as if they are enacted under IGST Act.

  • (i) scope of supply;
  • (ii) composite supply and mixed supply;
  • (iii) time and value of supply;
  • (iv) input tax credit;
  • (v) registration;
  • (vi) tax invoice, credit and debit notes;
  • (vii) accounts and records;
  • (viii) returns, other than late fee;
  • (ix) payment of tax;
  • (x) tax deduction at source;
  • (xi) collection of tax at source;
  • (xii) assessment;
  • (xiii) refunds;
  • (xiv) audit;
  • (xv) inspection, search, seizure and arrest;
  • (xvi) demands and recovery;
  • (xvii) liability to pay in certain cases;
  • (xviii) advance ruling;
  • (xix) appeals and revision;
  • (xx) presumption as to documents;
  • (xxi) offences and penalties;
  • (xxii) job work;
  • (xxiii) electronic commerce;
  • (xxiv) transitional provisions; and
  • (xxv) miscellaneous provisions including the provisions relating to the imposition of interest and penalty

C. COMMON PROVISIONS OF CGST AND UTGST

The following provisions of the Central Goods and Services Tax Act, shall, mutatis mutandis, apply to Union Territory as they apply in relation to Central tax as if they are enacted under UTGST Act..

  • (i) scope of supply;
  • (ii) composition levy; 9
  • (iii) composite supply and mixed supply;
  • (iv) time and value of supply;
  • (v) input tax credit;
  • (vi) registration;
  • (vii) tax invoice, credit and debit notes;
  • (viii) accounts and records;
  • (ix) returns;
  • (x) payment of tax;
  • (xi) tax deduction at source;
  • (xii) collection of tax at source;
  • (xiii) assessment;
  • (xiv) refunds;
  • (xv) audit;
  • (xvi) inspection, search, seizure and arrest;
  • (xvii) demands and recovery;
  • (xviii) liability to pay in certain cases;
  • (xix) advance ruling;
  • (xx) appeals and revision;
  • (xxi) presumption as to documents;
  • (xxii) offences and penalties;
  • (xxiii) job work;
  • (xxiv) electronic commerce;
  • (xxv) settlement of funds;
  • (xxvi) transitional provisions; and
  • (xxvii) miscellaneous provisions including the provisions relating to the imposition of interest and penalty,

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