APPLICABILITY OF CERTAIN PROVISIONS OF ‘CGST’ TO ‘IGST’

[Mr. M. GOVINDARAJAN]

Section17 of ‘The Integrated Goods and Services Tax Act, 2016’ provides that the provisions relating to registration, valuation, time of supply of goods, time of supply of services, change in rate of tax in respect of supply of goods or services, input tax credit and utilization thereof, distribution of input tax credit by an Input Service Distributor, job work, accounts and records, payment, tax deduction at source, return, tax collection at source, audit, assessment, adjudication, demands, refunds, interest, recovery of tax, offences and penalties, inspection, search and seizure, prosecution and power to arrest, appeals, review, advance ruling and compounding shall apply, so far as may be, in relation to the levy of tax under this Act as they apply in relation to levy of tax under the CGST Act,2016. 

The applicable rules topic wise is discussed as below:

Registration

Chapter VI of the Goods and Services Tax, 2016 (‘Act’ for short) deals with Registration.  The following are the sections dealing with the registration-

• Section 23 – Registration;
• Section 24 – Special provisions relating to casual taxable person and nonresident taxable person;
• Section 25 – Amendment of registration;
• Section 26 – Cancellation of registration;
• Section 27 – Revocation of cancellation of registration.

Valuation

Section 15(1) of the Act deals with the valuation of taxable supply of goods and/or services.  Section 15(2) prescribes what shall be included in the valuation.  Section 15(3) prescribes what shall be excluded in the valuation.

Time of supply of goods

Section 12 of the Act deals with the time of supply of goods.  Section 12(2) provides that the time of supply of goods shall be the earlier of the following dates, namely-

• the date of issue of invoice by the supplier or the last date on which he is required, under Section 28, to issue the invoice with respect to the supply; or
• the date on which the supplier receives the payment with respect to the supply.

Time of supply of services

Section 13 of the Act deals with the time of supply of services.  Section 13(2) provides that the time of supply of services shall be the earlier of the following dates, namely,-

• the date of issue of invoice by the supplier or the last date on which he is required, under Section 28 to issue the invoice with respect to the supply; or
• the date on which the supplier receives the payment with respect to the supply.

Change in rate of tax in respect of supply of goods or services

Notwithstanding anything contained in Section 12 or Section 13, the time of supply, in cases where there is a change in the rate of tax in respect of goods or services, shall be determined as per the provisions contained in Section 14 of the Act.

Input tax credit and utilization

Chapter V of the Act deals with input tax credit, input tax credit in respect of inputs sent for job work, input service distributor.  The following are the sections dealing with the input tax credit

• Section 16 – Eligibility and conditions for taking input tax credit;
• Section 17 – Apportionment of credit and blocked credits;
• Section 18 – Availability of credit in special circumstances;
• Section 19 – Recovery of input tax credit and interest thereon;
• Section 20 – Taking input tax credit in respect of inputs sent for job work;
• Section 21 -Manner of distribution of credit by Input Service Distributor;
• Section 22 – Manner of recovery of credit distributed in excess.

Accounts and Records

Chapter XII of the Act deals with the Accounts and records to be maintained by the assessee.  The following are the sections dealing with the accounts and records-

• Section 53 – Accounts and other records;
• Section 54 – Period of retention of accounts;

Job work

Chapter XIII of the Act containing Section 55 deals with the special procedure for removal of goods for certain purposes.

Payment of tax

Chapter IX deals with the payment of tax.  The following are the sections dealing with the payment of tax-

• Section 44 – Payment of tax, interest, penalty and other amounts;
• Section 45 – Interest on delayed payment of tax;

Tax Deduction at source

Section 46 of the Act deals with tax deduction at source.  The said section provides that the Central or a State Government may mandate a department or establishment of the Central or State Government or local authority or Governmental agencies or such persons or category of persons as may be notified by the Central or the State Government on the recommendations of the GST Council. 

The proviso to Section 17 of the IGST Act provides that in the case of tax deduction at source, the deductor shall deduct tax at the rate of 2% from the payment made or credited to the supplier.

Return

Chapter VIII of the Act deals with filing of various types of returns.  The following are the sections dealing with filing of GST returns-

• Section 32 – Furnishing details of outward supplies;
• Section 33 – Furnishing details of inward supplies;
• Section 34 – Returns;
• Section 35 – First Return;
• Section 36 – Claim of input tax credit and provisional acceptance thereof;
• Section 37 – Matching, reversal and reclaim of input tax credit;
• Section 38 – Matching, reversal and reclaim of reduction in output tax liability;
• Section 39 – Annual return;
• Section 40 – Final return;
• Section 41 – Notice to return defaulters;
• Section 42 – Levy of late fee;
• Section 43 – Tax return preparers.

Tax collection at source

Section 56 of the Act deals with collection of tax source by the electronic commercial operator.  The proviso to Section 17 of the IGST Act provides that in case of tax collection at source, the operator shall collect tax at the rate of 2% of the value of net supplies.

Audit

Chapter XVI of the Act deals with audit.  The following are the sections dealing with Audit-

• Section 63 - Audit by tax authorities;
• Section 64 – Special Audit;
• Section 65 – Power of CAG to call for information for audit.

Assessment

Chapter XV of the Act deals with the assessment types and procedures.  The following are the sections dealing with the assessment-

• Section 57 – Self assessment;
• Section 58 – Provisional assessment;
• Section 59 – Scrutiny of returns;
• Section 60 – Assessment of non filers of returns;
• Section 61 – Assessment of unregistered persons;
• Section 62 – Summary assessment in certain special cases.

Adjudication, demand and recovery of tax

Chapter XVII of the Act deals with the above.  The following are the sections dealing with adjudication, demand and recovery of tax-

• Section 66 - Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts;
• Section 67 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts;
• Section 68 – General provisions relating to determination of tax;
• Section 69 – Tax collected but not deposited with the Central or a State Government;
• Section 70 – Tax wrongly collected and deposited with the Central or a State Government;
• Section 71 – initiation of recovery proceedings;
• Section 72 – Recovery of tax;
• Section 73 – Bar on recovery proceedings;
• Section 74 – Payment of tax and other amount in installments;
• Section 75 – Transfer of property to be void in certain cases;
• Section 76 – Tax to be first charge on property;
• Section 77 – Provisional attachment to protect revenue in certaincases;
• Section 78 – Continuation and valuation of certain recovery proceedings.

Refunds

Chapter XI of the Act deals with the refunds of tax amount, if any.  The following are the sections dealing with refunds-

• Section 48 – Refund of tax;
• Section 49 – Refund in certain cases;
• Section 50 – Interest on delayed refunds;
• Section 51 – Consumer Welfare Fund;
• Section 52 – Utilization of the fund.

Offences and penalties

Chapter XIX of the Act deals with offences and penalties.  The following sections deal with offences and penalties-

• Section 85 – Offences and penalties;
• Section 86 – General penalty;
• Section 87 – General disciplines related to penalty;
• Section 88 – Power to impose penalty in certain cases;
• Section 89 – Detention, seizure and release of goods and conveyances in transit;
• Section 90 – Confiscation of goods and/or conveyances and levy of penalty;
• Section 91 – Confiscation of penalty not to interfere with other punishments.

Inspection, search, seizure and arrest

Chapter XVIII of the Act deals with the powers given to GST officers for inspection, search and seizure.  The following sections deal with inspection, search, seizure and arrest-

• Section 79 – Power of inspection, search and seizure;
• Section 80 – Inspection of goods in movement;
• Section 81 – Power to arrest;
• Section 82 – Power to summon persons to give evidence and produce documents;
• Section 83 – Access to business premises;
• Section 84 – Officers required assisting CGST/SGST Officers.

Prosecution and compounding of offences

Chapter XX of the Act deals with prosecution and compounding of offences.  The following sections deal with the above said subject-

• Section 92 – Prosecution;
• Section 93 – Cognizance of offence;
• Section 94 – Presumption of culpable mental state;
• Section 95 – Relevancy of statements under certain circumstances;
• Section 96 – Offences by companies and certain other persons;’
• Section 97 – Compounding of offences.

Appeals and Revision

Chapter XXI of the Act deals with appeals and revision under this Act.  The following section deals with appeals and revision-

• Section 98 – Appeals to First Appellate Authority;
• Section 99 – Revisional powers of Chief Commissioner or Commissioner;
• Section 100 – Constitution of the National Appellate Tribunal;
• Section101 – Appeals to the Appellate Tribunal;
• Section 102 – Order of the Appellate Tribunal;
• Section 103 – Procedure of Appellate Tribunal;
• Section 104 – Interest on refund of pre-deposit;
• Section 105 – Appearance by authorized representative;
• Section 106 – Appeal to the High Court;
• Section 107 – Appeal to the Supreme Court;
• Section 108 – Hearing before Supreme Court;
• Section 109 – Sums due to be paid notwithstanding appeal etc.,
• Section 110 – Exclusion of time taken for copy;
• Section 111 – Appeal not to be filed in certain cases;
• Section 112 – Non appealable decisions and orders.

Advance Ruling

Chapter XXII of the Act deals with advance ruling.  The following are the sections dealing with advance ruling-

• Section 113 – Definitions;
• Section 114 – Authority of Advance Rulings;
• Section 115 – Appellate Authority for Advance Rulings;
• Section 116 – Application of advance ruling;
• Section 117 – Procedure on receipt of application;
• Section 118 – Appeal to the Appellate Authority;
• Section 119 – Orders of the Appellate Authority;
• Section 120 – Rectification of Advance Ruling;
• Section 121 – Applicability of Advance Ruling;
• Section 122 – Advance ruling to be void in certain circumstances;
• Section1 23 – Powers of the Authority and Appellate Authority;
• Section 124 – Procedure of the Authority and the Appellate Authority.

Discussions to this article

[Ganeshan Kalyani]

Nice article Sir. Thanks for sharing the same with us. Some changes may undergo in the law depending upon the discussion of GST Council which are going on at regular intervals.

[Vishnu Dutt Gupta]

Article is very Nice sir & we are awaited your next article. As per chapter XIII ( Job work) CGST law applicable in IGST also.

Rgds,

MK

[Subhash Modi]

In case of refund of IGST paid on deemed export supplies claimed by the receiver of qualifying goods (inter-state sale) is the jurisdictional authority in the receiving state authorised to sanction and grant refund of half of the IGST by debit to the CGST account and other half to the SGST account of the originating state or instead the receiving state as the respective CGST and state wise deemed export notifications 47, 48 and 49 have been issued under the CGST Act and the state acts and no parallel notification has been issued under IGST Act?

Do these enabling provisions in the CGST (applicability to IGST Act) empower the proper officer to sanction and grant refund in the receiving state even if the IGST was paid in the originating state utilising IGST and/or CGST and or SGST credit or cash, if short)/

Thanking you in anticipation