Friends we all know that GST for the first time will be covered for 75 marks Final paper 8 Part I and 25 marks for Customs & FTP Part II. This syllabus is applicable for both old syllabus and new syllabus. So for this subject, there is no different syllabus for old and new.
Since we all know GST is a new In Direct Tax (IDT) and is undergoing lots of changes every day. So, it would be best to keep yourself updated with latest notifications on the subject till at least one month before the exam.
Mostly all Indirect Tax such as Vat, Service Tax, Excise, Octroi, Entertainment tax etc have been subsumed under GST except a few items which have still be kept out of GST such as petroleum products (HSD, ATF, Petrol, Natural Gas), Liquor for human consumption. Tobacco is under GST but Union Govt. has also retained the power to levy excise duty on Tobacco and Tobacco products.
Dual GST model had to be adopted in view of the federal structure of the country. Article 246A was introduced by the Constitution 101st Amendment Act 2016 where the power to levy Goods & Services Tax was empowered both to State & Centre.
GST is levied on the supply of Goods & Services or both. GST is destination based consumption Tax. This means GST will be charged only on consumption ie. B2C transactions. Till B2B Govt. will be the custodian of the tax collected and the same will be given credit to the next supplier. It is a tax where seamless credit flow is allowed and there is no cascading effect of Tax. (no double taxation).
Whenever we will be making intrastate supply (within the same state) SGST & CGST will be charged 50% each. If tax rate is 18% then 9% SGST and 9% CGST will be charged. In case of inter state supply it will be charged as IGST at full amount say 18%.
In GST the word supply has been used instead of sale. So GST becomes applicable whenever you supply goods or services or both. Therefore, it is necessary to understand the definition of SUPPLY under GST. As per Sec 7 (1) of CGST Act.
Supply includes
Sale, transfer, barter, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course of furtherance of business.
Importation of services for a consideration whether or not in the course of business.
- Activities specified in Schedule I without consideration.
- Activities specified in Schedule II
Except for activities specified in Schedule III which shall neither be treated as Supply of Goods nor Supply of Services.
So, I request you to read all the three schedules carefully and understand what is supply under CGST.
Basically, supply has following five components:
It should be a taxable supply, by a taxable person (who is registered under Act), in the course of furtherance of business, for consideration, of goods & services except for importation of services not in the course of business, and Schedule I items even without consideration.
Reverse charge
Reverse charge is paid by the recipient on the supply of goods or services or both. Reverse charge is paid when goods supplied by an unregistered person to registered person or as per the list notified by Govt Section 9 (4). In case of goods Cashew nuts not shelled and peeled, bidi wrapper leaves, tobacco leaves, the supply of lottery, silk yarn etc. In case of services GTA (goods transport Agency), Advocate, Arbitral Tribunal and more as given in subsection 4 of section 9.
More chapters will be covered in my next articles which will cover Levy of Tax, Place of supply, Time of Supply & Value of supply. This way slowly I would cover most of the IDT (GST) paper of CA Final.
The author can also be reached at sjcabom@gmail.com.
Disclaimer: All views are personal and shall not be taken as opinion or statement of Law.
Source: CGST Act
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