2020-05-13 10:29:27GST CenterEnglishThe government of India implemented the GST Law to introduce Goods and Services Tax in India.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2020/05/gst-law-india.pnghttps://quickbooks.intuit.com/in/resources/gst-center/gst-case-law-in-india/GST Law: Check GST case Law's PDF docs | Gst law in India %%sep%% %%sitename%%

GST Law: An Overview of Goods & Services Tax in India

5 min read

In this article, you will learn:

  • What is GST Law?
      • Central Goods and Services Tax Act, 2017
      • State Goods and Services Tax Act, 2017
      • Integrated Goods and Service Tax Act, 2017 (including Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017
      • Union Territory Goods and Services Tax Act, 2017
      • Goods and Services Tax (Compensation to States) Act, 2017 (hereinafter referred to as CGST, SGST, UTGST, IGST, and CESS respectively at the GST portal)
      • Rules, Notifications, Amendments, and Circulars issued under the respective Acts.

The government via 101 Amendment of the Constitution of India introduced Goods and Services Tax from July 1, 2017. GST was introduced with a purpose of creating a unified market in the country by subsuming a host of taxes and reducing tax compliance.

Accordingly, 17 Centre and State levies such as excise duty, Services Tax, VAT, Central Sales Tax etc were absorbed and a single destination-based indirect tax was introduced in the form of GST.

To implement GST in India, government formulated the GST Law comprising of Acts and Rules for various components of GST and circulars and notifications for amendments made to further simplify GST.

In this article, you will learn what is GST case Law, CGST, SGST, UTGST, IGST, CGST and IGST Rules.

What is GST Law?

The government of India implemented the GST Law to introduce Goods and Services Tax in India.

Prior to GST, both Centre and States charged and collected tax on goods or services exclusively in accordance to the respective subjects listed in the Union and the State Lists. Thus, Centre was responsible for collecting taxes such as central excise, customs and service tax whereas VAT, Central Sales Tax, Octroi, Entertainment etc were the major source of revenue of the State governments.

With the introduction of GST, all these taxes were consolidated into a single tax in the form of GST. Since India is Federal country, both the Centre and the States have powers to levy and collect taxes under respective legislations.

Therefore, a Dual Model of GST has been implemented in India under which the power to levy tax is distributed between Centre and States. This means GST Law enables both the Central and the State Governments or UT’s to levy tax on goods and services simultaneously.

Accordingly, there are four components of GST namely CGST, SGST, UTGST and IGST. Each of these are governed by separate acts which comprise the GST Law. Thus, the GST Law consists of :

  • Central Goods and Services Tax Act, 2017

Central Goods and Services Tax (CGST) is an indirect tax levied and collected by the central government on intra-state supplies. It is governed by CGST Act, 2017. This Act was introduced to outline the provisions for levying and collection tax on intra-state supply of goods and services by the Central government and all the issues related to the same.

CGST Act, 2017 also includes Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017.

In addition to this, CGST Rules 2017 have also been introduced which are read together with the CGST Act, 2017 to understand the applicability of CGST.

There are two parts to CGST Rules, 2017. Part A contains the Rules whereas Part B contains various Forms under CGST.

Refer to the following links to access CGST Act, 2017, CGST (Extension to Jammu and Kashmir) Act, 2017 and Rules.

GST Law PDF’s

Download CGST Act 2017 PDF

https://www.cbic.gov.in/resources//htdocs-cbec/gst/CGST%20(Extension%20to%20Jammu%20and%20Kashmir)%20Act,%202017.pdf

https://www.cbic.gov.in/resources//htdocs-cbec/gst/18.07.2019_CGST_Rules-2017-Part-A.pdf

https://cbic-gst.gov.in/pdf/23042019-CGST-Rules-2017-Part-B-Forms.pdf

  • State Goods and Services Tax Act, 2017

SGST is an indirect tax levied and collected by a State Government on the intra-state supplies. This tax levy is governed by the State Goods and Services Tax (SGST) Act , 2017. In addition to this, along with SGST, CGST will also be levied on the same intra-state supply of goods. But CGST will be governed by the CGST Act, 2017.

Each state has its own State Goods and Services Tax Act, 2017. To access the respective SGST Acts, 2017 refer to the following link which provides the links to the websites of the tax authorities for each of the states.

https://services.gst.gov.in/services/gstlaw/gstlawlist

  • Integrated Goods and Service Tax Act, 2017 (including Integrated Goods and Services Tax (extension to Jammu and Kashmir) Act, 2017

Integrated Goods and Services Tax (IGST) is a tax levied on inter-state trade of goods and services by the Central Government. Such a tax helps the government to control interstate trade of goods or services and ensure that the SGST component of GST goes to the consumer State. Furthermore, it is governed by the IGST Act, 2017.

In addition to this, IGST Rules 2017 have also been introduced which are read together with the IGST Act, 2017 to understand the applicability of IGST.

Following are the links to the IGST Act, 2017, IGST Act (extension to Jammu and Kashmir) Act and Rules containing provisions for the application of IGST on interstate supply of goods and services.

http://gstcouncil.gov.in/sites/default/files/IGST.pdf

https://www.cbic.gov.in/resources//htdocs-cbec/gst/IGST%20(Extension%20to%20Jammu%20and%20Kashmir)%20Act,%202017.pdf

http://gstcouncil.gov.in/sites/default/files/IGST_rules_15112017.pdf

  • Union Territory Goods and Services Tax Act, 2017.

Union Territory Goods and Services Tax refers to a tax that is levied on intra-state supply of goods and services together with tax charged under CGST Act, 2017.

Furthermore, it is charged at a rate not exceeding 20% which is notified by the Central Government as per the suggestions given by the GST Council.

In addition to this, UTGST is collected in a manner as suggested by the Council and is paid by the taxable person under the UTGST Act, 2017.

Following is the link to the UTGST Act, 2017 which contains provisions with regards to applicability of UTGST.

https://www.cbic.gov.in/resources//htdocs-cbec/gst/ut-gst-act.pdf

  • Goods and Services Tax (Compensation to States) Act, 2017 (hereinafter referred as CGST, SGST, UTGST, IGST and CESS respectively at the GST portal)

This Act deals with the provisions relating to the Compensation to be given to the States for the loss of revenue resulting on account of implementation of the GST.

A number of provisions with respect to the projected growth rate subsumed per annum during the transition period, base year revenue, projected revenue for any year etc are contained in Goods and Services Tax (Compensation to States) Act, 2017.

To understand these provisions in detail, refer to the following link.

https://www.cbic.gov.in/resources//htdocs-cbec/gst/gst-compensation-to-states-act.pdf

  • Rules, Notifications, Amendments and Circulars issued under the respective Acts.

To further simplify and improve the GST Law, the GST Council makes changes or amendments or introduces new rules via notifications, orders and circulars from time to time.

The changes could relate to modifying the GST rates, extension of the sue dates to file returns, amendments in GST provisions and rules etc. All such notifications are provided by the Council on the CBIC website.

Following is the link to amendments, notifications, circulars etc pertaining to GST issued by the CBIC till date.

https://www.cbic.gov.in/htdocs-cbec/gst/index-english

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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