RULES FOR INTEGRATED GOODS AND SERVICES TAX ACT, 2017

[Mr. M. GOVINDARAJAN]

Section 20 of Integrated Goods and Services Tax Act, 2017 (‘Act’ for short) provides that the provisions of CGST Act relating to-

• scope of supply;
• composite supply and mixed supply;
• time and value of supply;
• input tax credit;
• registration;
• tax invoice, credit and debit notes;
• accounts and records;
• returns, other than late fee;
• payment of tax;
• tax deduction at source;
• collection of tax at source;
• assessment;
• refunds;
• audit;
• inspection, search, seizure and arrest;
• demands and recovery;
• liability to pay in certain cases;
• advance ruling;
• appeals and revision;
• presumption as to documents;
• offences and penalties;
• job work;
• electronic commerce;
• transitional provisions; and
• miscellaneous provisions including the provisions relating to the imposition of interest and penalty.

Rules were framed for many of the subjects stated above.  Besides rules are required to be made in respect of the following provisions contained in the Act-

• Section 10 (2) – section 10 deals with the place of supply of goods other than supply of goods imported into or exported from India.  Section 10(2) provides that where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed;
• Explanation to section 12(3) – section 12 deals with the place of supply of services where location of supplier and recipient is in India. Explanation to section 12 provides that where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard.In the absence of such contract or agreement, on such basis as may be prescribed;
• Explanation to section 12 (7) – it provides that where the event is held in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such event, the place of supply fo services shall be taken as being in each of the respective States or Union territories 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 basis as may be prescribed;
• Explanation to section 12(11) – it provides that where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories 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 basis as may be prescribed;
• Section 12(14) – it provides that the place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement shall be taken as being in each of such States or Union territories.  The value of such supplies specific to each State or Union territory shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories as may be 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 basis as may be prescribed.
• Section 13(7) – it provides that where the services referred to in-

• Sub-section 3 – place of supply of services shall be the location where the services are actually performed;
• Sub-section (4) – place of supply of services supplied directly in relation to an immovable property;
• Sub-section (5) – place of supply of services by way of admission or organization of an event;

are supplied in more than one State or Union territory, the place of supply of such services shall be taken as being in each of the respective States or Union territories and the value of such supplies specific to each State or Union territory shall be 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 basis as may be prescribed.

• Section 15 – It provides that the integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions as may be prescribed.
• Section 17(4) – It provides that where an amount has been apportioned to the Central Government or a State Government under section 17(1) or section 17(2) or section 17(3) the amount collected as integrated tax shall stand reduced by an amount equal to the amount so apportioned and the Central Government shall transfer to the central tax account or Union territory tax account, an amount equal to the respective amounts apportioned to the Central Government and shall transfer to the State tax account of the respective States an amount equal to the amount appropriated to that State, in such manner and within such time as may be prescribed;
• Section 17(5) – It provides that any integrated tax apportioned to a State or, as the case may be, to the Central Government on account of a Union territory, if subsequently found to be refundable to any person and refunded to such person, shall be reduced from the amount to be apportioned under this section, to such State, or Central Government on account of such union territory, in such manner and within such time as may be prescribed;
• Section 18(a) – It provides that on utilization of credit of integrated tax availed under this Act for payment of central tax in accordance with the provisions of section 49(5) the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed;
• Section 18(b) – it provides that on utilization of credit of integrated tax availed under this Act for payment of union territory tax in accordance with the provisions of section 9 of UTGST Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the Union territory tax account in such manner and within such time as may be prescribed;
• Section 18(c) - it provides that on utilization of credit of integrated tax availed under this Act for payment of state tax in accordance with the provisions of the respective State Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilized and shall be apportioned to the appropriate State Government and the Central Government shall transfer the amount so apportioned to the account of the appropriate State Government in such manner and within such time as may be prescribed;
• Section 19 (1) – It provides that a registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be prescribed.