Sensys

Jun 062017
 

Due dates for the Month of June 2017
5th
Service Tax
- Service Tax payments by Companies for May
Central Excise#
- Duty Payment for all Assessees other than SSI Units for May
7th
Income Tax
- TDS Payment for May
10th
Central Excise
- Monthly Return in Form ER-1 (Ann-12) for other than units availing SSI exemption for May
– Monthly Return in Form ER-2 (Ann-13) by 100% EOUs for May
– Exports – Procurement of specified goods from EOU for use in manufacture of Export goods in Form Ann-17B for DTA units, procuring specified goods from EOU for manufacture of export goods.
– Proof of Exports in Form Ann.-19, once in a month for all exporters, exporting goods under Bond
– Export details in Form Ann.-20, for Manufacturing following simplified export procedure.
– Removal of excisable goods at concessional rate in Form Ann. -46 for Manufacturers receiving the excisable goods for specified use at concessional rate of duty in terms of Rules described in Col. 4.
15th
Income Tax
- Advance Income Tax – All Assessees
15th
Provident Fund
- PF Payment for May
21st
ESIC
- ESIC Payment for May
MVAT
– MVAT Monthly Payment & Return for May
30th
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
– Professional Tax (Enrollment) payment for the FY-2017-18
Central Excise
– Particulars relating to clearances, electricity load etc., in Form Ann.-4 exceeding the limit of Rs. 90 lakhs of exempted clearances for small scale units availing exemption and whose turnover exceeds or has exceeded Rs. 90 lakhs in a financial year, as the case may be.
# If Excise duty / Service tax paid electronically through internet banking, the date is to be reconed as 6th instead of 5th
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: enquiry@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
May 192017
 

The Indirect Tax department released the rate schedule for 1,211 goods on Thursday Evening (18th May 2017). The list, approved by the GST Council. All the Goods have been covered by the GST Council on Thursday Meeting (18th May 2017).

Here are complete summary of the list issued by the Council which is divided into four slabs of the GST Rates, viz 5%, 12%, 18% & 28% and the Zero Percent Tax Rate Goods.

Click here to Download PDF File

May 122017
 

Place of supply of services in case of IGST

Significance of place of supply in IGST

According to section 4 of the act there shall be levied a tax called the Integrated Goods and Services Tax on all supplies of goods and/or services made in the course of inter-State trade or commerce at the rate specified in the Schedule to this Act and collected in such manner as may be prescribed. As per section 3(1) of the act supply of goods / services in the course of inter-state trade or commerce means any supplies where location of supplier and place of supply are in different state. Hence, IGST would be levied and payable only when place of supplier and place of supply are in different state.

Problem in identification of place of supply in case supply of services

Services being intangible pose problems w.r.t determination of place of supply mainly due to following factors:

  1. The manner of delivery of service could be altered easily. For example telecom service could change from mostly post-paid to mostly pre-paid; billing address could be changed, billers address could be changed, repair or maintenance of software could be changed from onsite to online; banking services were earlier required customer to go to the bank, now the customer could avail service from anywhere;
  2. Service provider, service receiver and the service provided may not be ascertainable or may easily be suppressed as nothing tangible moves and there would hardly be a trail;
  3. For supplying a service, a fixed location of service provider is not mandatory and even the service recipient may receive service while on the move. The location of billing could be changed overnight;
  4. Sometime the same element may flow to more than one location, for example, construction or other services in respect of a railway line, a national highway or a bridge on a river which originate in one state and end in the other state.
  5. Similarly a copy right for distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme is broadcasted across the country at the same time.
  6. An airline may issue seasonal tickets, containing say 10 leafs which could be used for travel between any two location in the country.
  7. The card issued by Delhi metro could be used by a person located in Noida (State Uttar Pradesh), or Delhi or Faridabad (State Haryana), without the Delhi metro being able to distinguish the location or journeys at the time of receipt of payment.
  8. Services are continuously evolving and would thus continue to pose newer challenges. For example 15-20 years back no one could have thought of DTH, online information, online banking, online booking of tickets, internet, mobile telecommunication etc.

The following provisions of shall apply to determine the place of supply of services 

General Provisions 1 – Supplied to registered person:

The place of supply of services, except the services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to a registered person shall be the location of such person.

General Provisions 1 – Supplied to un-registered person:

The place of supply of services, except the services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to any person other than a registered person shall be

  • the location of the recipient where the address on record exists, and
  • the location of the supplier of services in other cases.

Thus, if no specific provision in law exists, the place of supply of services shall be the location of recipient or location of supplier. However, some specific legal fictions are provided in law with respect to some services as summarized below:

Case study:

The place of supply in relation to immovable property is the location of immovable property.  Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?

Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. (The Explanation clause to section 6(5) of the IGST Act)

What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states?

In case of an event, if the recipient of service is registered, the place of supply of services for organizing the event shall be the location of such person.

If the recipient is not registered, the place of supply shall be the place where event is held.

Since the event is being held in multiple states and a consolidated amount is charges for such services, the place of supply shall be taken as being in each state in proportion to the value of services so provided in each state. (The Explanation clause to section 6(8) of the IGST Act)

What will be the place of supply of goods in respect of transport of goods by courier?

In case the recipient is registered, the location of such person shall be the place of supply.

However, if the recipient is not registered, the place of supply shall be the place where the goods are handed over for transportation.

What will be the place of supply if a person travels from Mumbai to Delhi and back to Mumbai?

If the person is registered, the place of supply shall be the location of recipient.

If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embarks. However, for the return journey, the place of supply shall be Delhi as the return journey has to be treated as separate journey. (The Explanation clause to section 6(11) of the IGST Act)

Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply?

In the above case, the place of embarkation will not be available at the time of issue of invoice as the right to passage is for future use. Accordingly, place of supply cannot be the place of embarkation. In such cases, the default rule shall apply. (The proviso clause to section 6(10) (b) of the IGST Act)

What will be the place of supply for mobile connection? Can it be the location of supplier?

The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state. The consumption principle will be broken if the location of supplier is taken as place of supply and all the revenue may go to a few states where the suppliers are located.

The place of supply for mobile connection would depend on whether the connection is on postpaid or prepaid basis.

  • In case of postpaid connections, the place of supply shall be the location of billing address of the recipient of service.
  • In case of pre-paid connections, the place of supply shall be the place where payment for such connection is received or such pre-paid vouchers are sold.
  • However if the recharge is done through internet/e-payment, the location of recipient of service on record shall be the taken as the place of service.

A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?

The place of supply shall be the location of the recipient of services on the records of the supplier of services. So Goa shall be the place of supply.

A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?

  • If the service is not linked to the account of person, place of supply shall be Kullu i.e. the location of the supplier of services.
  • However if the service is linked to the account of the person, the place of supply shall be Mumbai, the location of recipient on the records of the supplier.

A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply?

The location of the recipient of services on the records of the supplier of insurance services shall be the place of supply. So Gurgaon shall be the place of supply. (proviso clause to section 6(14) of the IGST Act)

May 102017
 

GSTTHREAD
GST Software, Knowledge-base, Forums, Blogs & many more…
https://www.gstthread.com
Dear Sir / Madam,Sensys Technologies is pleased to announce Launch of its new, fully-featured GST website
https://www.gstthread.com

GSTTHREAD.com offers, a complete Software on GST – GSTTHREAD, with more flexibility, stability & reliability, with dynamic enhancement capability of future GST development. Designed using the latest technology, GSTTHREAD offers over-the-top user experience, Powerful Interface, compatibility with modern browsers and responsiveness to Mobile devices.
GSTTHREAD.com, comprehensive GST Knowledge-base consisting of concepts, objectives, requirements, rules & specification, where everyone can easily get GST related information.
GSTTHREAD.com provides a Forum, an exchange platform where all the information and updates related to GST topics will be discussed. Besides, users can ask questions which will be answered by users and GST experts.
GSTTHREAD.com provides a Blog section that will address topics related to GST and where users will have the privilege to publish their GST-related blog posts

For m ore information, visit our website at https://www.gstthread.com

Thanking You,

GSTTHREAD
Evolving. Thriving. GST.

https://www.gstthread.com

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Tel : 022-662 786 00 (Dial 1 for Information)
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May 092017
 

Returns of outward supplies under the GST Regime

The purpose of this article is to create awareness about the soon to be implemented Goods and Service Tax in India. This article deals with various aspects of return of outward supplies but does not deal with matching which is dealt in a separate article on the subject.

Who are required to file

As per section 37(1) of the CGST Act read with Returns Rules, every registered person except the following:-

i. An Input Service Distributor.

ii. A non-resident taxable person.

iii. A person paying tax under the composition scheme.

iv. A person paying tax under section 51 (TDS related provisions).

v. A person paying tax under section 52 (TCS related provisions).

are required to furnish electronically through the Common Portal either directly or through a Facilitation Centre notified by Commissioner, in FORM GSTR-1, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period.

The registered person shall not be allowed to furnish the details of outward supplies during the period from the eleventh day to the fifteenth day of the month succeeding the tax period.

The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein. Any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

Contents of details of outward supplies

The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the following details:-

1) Invoice wise details of all

i) Inter-State and intra-State supplies made to registered persons.

ii) Inter-State supplies with invoice value more than two and a half lakh rupees made to unregistered persons.

2) Consolidated details of all

i) Intra-State supplies made to unregistered persons for each rate of tax.

ii) State wise inter-State supplies with invoice value less than two and a half lakh rupees made to unregistered persons for each rate of tax.

3) Debit and credit notes, if any issued during the month for invoices issued previously.

Communication of details of outward supplies with the recipient

The details of outward supplies furnished by the supplier shall be made available electronically to the concerned registered recipient in Part A of FORM GSTR- 2A, in FORM GSTR-4A (Composition Scheme) and in FORM GSTR-6A (Input Service Distributor) through the Common Portal after the due date of filing of FORM GSTR-1.

The author is a fellow member of the Institute of Chartered Accountants of India and also a qualified Company Secretary. The author has also done DISA (ICAI), certificate on IFRS (ICAI), Certificate on Forex and Treasury Management (ICAI), Certificate on Forensic Accounting and Fraud Prevention (ICAI). The author practices as a Chartered Accountant under the name and style of Rishabh Kumar Barmecha and Associates and is an expert in auditing, financial investigation, direct and indirect taxation.

The author can be reached at rishabhkumarbarmecha@gmail.com or 91 9007909221 or Twitter @CARKBarmecha.

CA Rishabh Kumar Barmecha

May 082017
 

Due dates for the Month of May 2017
5th
Service Tax
- Service Tax payments by Companies for April
Central Excise#
- Duty Payment for all Assessees other than SSI Units for April
7th
Income Tax
- TDS Payment for April
10th
Central Excise
- Monthly Return in Form ER-1 (Ann-12) for other than units availing SSI exemption for April
– Monthly Return in Form ER-2 (Ann-13) by 100% EOUs for April
– Exports – Procurement of specified goods from EOU for use in manufacture of Export goods in Form Ann-17B for DTA units, procuring specified goods from EOU for manufacture of export goods.
– Proof of Exports in Form Ann.-19, once in a month for all exporters, exporting goods under Bond
– Export details in Form Ann.-20, for Manufacturing following simplified export procedure.
– Removal of excisable goods at concessional rate in Form Ann. -46 for Manufacturers receiving the excisable goods for specified use at concessional rate of duty in terms of Rules described in Col. 4.
15th
Providend Fund
- PF Payment for April
21st
ESIC
- ESIC Payment for April
MVAT
– MVAT Monthly Payment & Return for April
31st
Income Tax
- TDS / TCS Quarterly Statements (Other than Government Deductor) January to March
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Central Excise
– Particulars relating to clearances, electricity load etc., in Form Ann.-4 exceeding the limit of Rs. 90 lakhs of exempted clearances for small scale units availing exemption and whose turnover exceeds or has exceeded Rs. 90 lakhs in a financial year, as the case may be.
# If Excise duy / Service tax paid electronically through internet banking, the date is to be reconed as 6th instead of 5th
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
May 052017
 

Meaning of profiteering:

It is a situation where a person seeks or exacts exorbitant profits without adding value to the supply or adding lesser value in the supply as compared to price charged. Under such situations profits are earned as a result of scarce supply of goods and/or services or any other reason.

Thus, this results in interfere by government to reduce the price forcefully in the economy so that customers are protected from being exploited. Under GST these measures are added so as to pass on the benefit of GST system to the ultimate customers.

Why anti-profiteering measures in GST:

The proposed GST regime is expected to reduce overall burden of indirect taxes in the economy. Under pre GST era, indirect taxes are indirectly paid by customers and hence post GST any reduction of taxes shall also go into the pockets of customers. However, past experience indicates that any such benefit never/lesser pass on to the customers. Hence, provisions as to anti profiteering are essential to pass on the benefit of taxes paid to customers.

Anti-profiteering measure in GST

Provision relating to anti-profiteering measure is given in section 171 under the chapter – XXI of the central goods and services tax act, 2017 (act no 12 of 2017) which is reproduced as below:

(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to:

  • The recipient by way of commensurate reduction in prices.

 (2) The Central Government may, on recommendations of the Council, by notification,

  • constitute an Authority, or
  • empower an existing Authority constituted under any law for the time being in force,

to examine:

  • whether input tax credits availed by any registered person or
  • the reduction in the tax rate

have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.

(3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.

Analysis:

The provision provides that the central government may by law constitute an authority or entrust an existing authority constituted under any law, to examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said goods and /or services supplied by him.

Further, the authority shall exercise such function and have such powers, including those for imposition of penalty, as may be prescribed in cases where it finds that the price charged has not been reduced as aforesaid.

History:

It may also be noted that the above said concept is not new to India as in the state of Bengal, the West Bengal Anti-profiteering Act, 1985 was enacted to prevent profiteering in certain articles in daily use.

Implications:

This is an attempt to ensure that business do not take advantage of GST and should pass on the benefit of GST input tax credit available or reduction in the rates to the consumer.

Implementation:

The success of the scheme depends on:

  • Anti-profiteering measure that are used for identifying the profiteers.
  • The proper checks and balances that are deployed by government agency so that undue power given to designated authority is not misused and that results unnecessary harassment of traders.
  • Timing of implementation of these measures will also play an important role in ascertaining its success.

Proactive measures:

With detailed guidelines / rules regarding the above scheme is yet come, the business man and small trades will to be very conscious before setting their prices of supply after the implementation of GST. If trades are panning the increase the price of their price in next few month, it is batter to increase the price before GST implementation otherwise it will be very difficult to prove before authority that the benefit of tax save is actually been passed on the customers. Further, a back end working shall be done by every business man to ensure that tax save due to GST results in price reduction of supply.

Apr 032017
 

Due dates for the Month of April 2017
10th
Central Excise
- Monthly Return in Form ER-1 (Ann-12) for other than units availing SSI exemption for March
– Monthly Return in Form ER-2 (Ann-13) by 100% EOUs for March
– Monthly Return in Form ER-3 (Ann-13A) for Small Scale Manufacturers, availing SSI exemption for January to March.
– Exports – Procurement of specified goods from EOU for use in manufacture of Export goods in Form Ann-17B for DTA units, procuring specified goods from EOU for manufacture of export goods.
– Proof of Exports in Form Ann.-19, once in a month for all exporters, exporting goods under Bond
– Export details in Form Ann.-20, for Manufacturing following simplified export procedure.
– Removal of excisable goods at concessional rate in Form Ann. -46 for Manufacturers receiving the excisable goods for specified use at concessional rate of duty in terms of Rules described in Col. 4.
– Particulars in Form No. ER-8 (Ann. 13AE) for specified assessees paying 2% duty for January to March.
15th
Provident Fund
- PF Payment for March
Central Excise
– Cenvat Credit return in Form Ann 13B for Registered Dealers and importer for January to March.
21st
ESIC
- ESIC Payment for March
MVAT *
– MVAT Monthly Payment & Return for March
MVAT Quarterly Payment & Return for January to March.
25th
SERVICE TAX
– Service Tax return for October to March – All Assessees.
30th
Income Tax
- TDS Payment / credited in the month of March
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Central Excise
– Annual Production capacity of a factory in Form ER-7 (Ann. 13AD) for all Registered Manufacturers.
– Particulars relating to clearances, electricity load etc., in Form Ann.-4 exceeding the limit of Rs. 90 lakhs of exempted clearances for small scale units availing exemption and whose turnover exceeds or has exceeded Rs. 90 lakhs in a financial year, as the case may be.
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
Mar 292017
 

UNION CABINET APPROVES 4 GST BILL

The Union Cabinet has cleared four bills related to the Goods and Services Tax (GST), ahead of their introduction in Parliament, to enable roll out of the tax reform from July 1.

Approval of the bills by Parliament and a separate one by all state Assemblies will complete the legislative process for roll out of the GST, the one-nation-one-tax system that merges central taxes like excise duty and service tax and state levies like VAT.

What is GST bill?

  • Goods and Services Tax bill is India’s biggest reform in India’s indirect tax structure.
  • The purpose of the bill is to introduce one single tax on supply of goods and services, from the manufacturing stage until its delivery to the final consumer.
  • The final consumer of the goods and/or services will only have to bear the GST charged by the final dealer in the supply chain, and avail set-off benefits at all the previous stages.
  • This means interim tax stages such as excise duties and service tax and state levies like VAT will be absorbed under GST.

What were the four bills approved by the Cabinet ?

  • The Central Goods and Services Tax Bill 2017 (The CGST Bill),
  • The Integrated Goods and Services Tax Bill 2017 (The IGST Bill),
  • The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and
  • The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill)

GST Bill peak rate to be 40%, slabs intact for now

 The GST levy may go up to 40 percent after the GST Council proposed raising the peak rate in the Bill to 20 percent, from the current 14 percent, to obviate the need for approaching Parliament for any change in rates in future.

The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 percent agreed upon last year for the moment, In addition, a cess will be levied on demerit goods like luxury cars, aerated drinks and tobacco products.

The CGST Bill sets the tax regime for the levy of GST on intra-state supply of goods or services or both by the central government. IGST Bill deals levy of GST on inter-state supply of goods or services or both by the central government.

Similarly, the UTGST Bill provides for levy of GST on intra-UT supply of goods and services in the Union Territories without legislature. The Compensation Bill provides for compensation to the states for loss of revenue due to GST for a period of five years.

All state assemblies will have to separately approve the state GST legislation before this one-nation one-tax regime can be rolled out.

What are the benefits of GST?

  • The introduction of GST bill will help in simplifying administration as it removes multiple taxation systems at every stage of trade model and removes disturbances in production.
  • It also aims towards providing a uniform tax rate for all goods and services.
  • The manufacturers will be benefited by the tax regime as it will reduce the tax that levied on them.
  • A system of seamless tax-credits will lead to minimal cascading of taxes, thus reducing hidden costs during trade.

Roadblocks for GST bill

  • The state GST bill has to be approved by every state government, before its introduction in Parliament for approval.
  • At the moment, the state GST bill has been sent to all the states by their respective state legislatures for the approval.

Courtesy: Esha Agrawal
For any queries and comments please email on: eshaag6@gmail.com

Mar 202017
 

Why there is a need to differentiate between goods and services?

  1. Different rate of tax and classification rule for goods and services: The goods are to be classified as per HSN codes and services are to be classified as per SAC terminology. These codes are to be mentioned over invoices also. Moreover the rate of taxing goods and/ or services are different and hence, difference in amount of liability to pay tax. Hence, there is a requirement to classify a supply between goods or services as per rules mentioned in sch. II of the revised model GST law.
  2. Different place of supply provisions as to goods / services: GST being destination based tax on consumption and hence tax revenue shall go to the state where goods / services are consumed and hence difference provisions are made under law for place of supply as to goods on one hand and place of supply on the other.
  3. All transaction including composite transactions has been considered either as goods or as services under schedule II of the Revised Model GST Law.

Meaning of terms Goods and Services:

Meaning of Goods Meaning of Services
Art. 366(12) of the constitution:

Good includes all materials, commodities and articles.

Sec 2(49) of Revised Model GST Law:

Goods means every kind of movable property and

  • Includes

o    Actionable claim
o    Growing crops
o    Grass

o    Things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply

Sec 2(92) of the revised Model GST law

Services means anything other than goods and

 

  • Does not include

o    Securities
o    Money

  • Does not include

o    Money
o    Securities

Case Study:

Trading in securities: Trading in securities is specifically excluded from the definitions of goods (Sec 2(49) and services (Sec 2(92) and hence securities are neither goods not services and hence GST is not payable on trading in securities.

Actionable claims: Actionable claims under revised law are considered to be goods. As per section 2(1) of the Revised Model GST Law – actionable claims shall have the meaning assigned to it under section 3 of the Transfer of property act 1882 (TPA). As per section 3 of TPA, actionable claims comprises two types of claims –

  1. A claim to unsecured debts and
  2. A claim to beneficial interest in movable property which is not in possession, actual or constructive – whether present or future, conditional or contingent

Immovable properties: Goods and service tax can not be levy on sale or purchase of immovable goods. However, transfer of immovable property by way of lease or right of usages therefore would be within the preview of GST law as supply of services.

Intangible goods: As per Article 366(12) of the constitution goods includes all materials, commodities and articles. This definition does not make any distinction between tangible goods and intangible goods. The term good, as observed in TCS v State of AP (2004), used in constitution is very wide. The term all materials, articles and commodities includes both tangibles and intangibles which is capable of abstraction consumption and use and which can be transmitted transferred delivered stored possessed. Thus, intangible goods shall be treated as good and supply of intangible goods shall be supply of goods.

Canned software: To minimize the litigation schedule II is inserted in Revised Model GST law to define the matters to be treated as supply of good or service As per entry no 5(d) of the same development, design programming customization adaption up-gradation enhancement implementation of software shall be treated as supply of services. However, canned software are pre fabricated software and are generally sold through a medium. Hence, such canned services shall be considered as goods and supply of the same may be treated as supply of goods.