Structure of GST in India and its Governing Laws

Structure of GST in India and its Governing Laws

GST shall be dual levy in India with both Centre and State government levying respective GST parallelly on all intra state supplies.  Thus, on every intra state supply, Central GST and respect State GST shall apply.  In case of inter state supplies, the right to impose tax has been reserved by the Centre.  The understanding can be shown as under:

structure-of-gst-in-india

Laws governing GST in India

The following laws shall be enacted for levy and collection of GST by Centre and States in India:

ZoneCommissionerateDivisionRangeJurisdiction
HyderabadHyderabadBanjara HillsBANJARA HILLS - IRegistrants haVIng names starting with alphabets, A to M in Ward No 93 of GHMC
HyderabadHyderabadBanjara HillsBANJARA HILLS - IIRegistrants haVIng names starting with alphabets, N to Z in Ward No 93 of GHMC
HyderabadHyderabadBanjara HillsJUBILEE HILLS - IRegistrants haVIng names starting with alphabets, A to M in Ward Nos. 94 & 95 of GHMC
HyderabadHyderabadBanjara HillsJUBILEE HILLS - IIRegistrants haVIng names starting with alphabets, N to Z in Ward Nos. 94 & 95 of GHMC
HyderabadHyderabadBanjara HillsYOUSUFGUDAWard Nos. 96,99,102 & 103 of GHMC

Each of the above acts governs certain part of the transaction and together govern the levy and collection of GST in India.  Though the Acts are different, their respective scope is abundantly clear.  The levy of different acts is explained by way of the following diagram:

laws-governing-gst-in-india

Scheme of Model Central GST Law

Central GST Act comprise of XXV Chapters which consist 162 Section and 4 Schedules.  The broad scheme of the Act is as follows:

Statecommissioneratedivision range jurisdiction
West BengalBolpurBankura DivisionRANGE-IBlock Ranibandh, Raipur-I, Sarenga Simlapal, Khatra-I, Khatra-II, Taldangra, Indpur, Onda, Bankura-I, Bankura-II, Chattna
West BengalBolpurBankura DivisionRANGE-IIBlock-Barjora except Maliara Gram Panchayat & Ghutgoria Gram Panchayat
West BengalBolpurBankura DivisionRANGE-IIIMaliara Gram Panchayat & Ghutgoria Gram Panchayat of Barjora Block
West BengalBolpurBankura DivisionRANGE-IVBlock Mejia, Saltora & Gangajalghati
West BengalBolpurBankura DivisionRANGE-VVishnupur Sub-Division (Block Sonamukhi, Patrasayar, Indus, Joypur, Kotalpur, Vishnupur)

Apart from the above law, there would be different other set of Rules and documents to assist a tax payer.  Currently, the following Rules/ documents are in public domain:

  • Report of the Joint Committee on Business Processes for GST on Refund Process
  • Report of the Joint Committee on Business Processes for GST on Registration
  • Report of the Joint Committee on Business Processes for GST Payment Process
  • Report of the Joint Committee on Business Processes on Returns

Scheme of Model State GST Law

Model State GST Law is similar to Central GST law and contains XXV Chapters which consist 162 Section and 4 Schedules.  The broad scheme of the Act is almost same and is as follows:

Statecommissioneratedivision range jurisdiction
KarnatakaMysuruBannimantap DivisionLASHKER MOHALLA RANGEAll areas covered under MYSURU City Corporation(MCC) ward nos. 27, 28 and 29. All areas under Kasaba hobli (other than the Villages of Hootagalli,Basavanahalli, Hinkal, Bogadi, Lingambudi and Ayyajjayyana Hundi) of MYSURU taluk in the revenue district of MYSURU.
KarnatakaMysuruBannimantap DivisionMANDYA EAST RANGEAll areas in the Maddur, Malavalli and Nagamangala taluks of revenue district of Mandya.
KarnatakaMysuruBannimantap DivisionMANDYA WEST RANGEAll areas in the Srirangapatna, Pandavapura, Krishnaraj Pet & Mandya taluks of revenue district of Mandya.
KarnatakaMysuruBannimantap DivisionMETAGALLI RANGEAll areas covered under MYSURU City Corporation(MCC) ward nos. 33, 45, 46, 47, 49 and 50.

Difference between Central and State GST laws

Though almost all sections are same, the following Sections are differently worded between the proposed Central GST Act and State GST Act:

Section 4 – The administration provisions as provided for Centre is different from that of the State.  While the administration of The proposed Central Goods And Services Tax Act, 2016 is proposed to be headed by CBEC (proposed to be renamed as CBIT – Central Board of Indirect Taxes), administration of proposed State Goods And Services Tax Act, 2016  is provoposed to be entrusted with Commissioner.

Section 35 –  This Section provides difference in application of available Central GST and State GST towards their respective output liabilities or output IGST.

Section 79-93 – Sections relating to Appeal are different in principle between The proposed Central Goods And Services Tax Act, 2016 and proposed State Goods And Services Tax Act, 2016.  The proposed Central Goods And Services Tax Act, 2016 provides for appeal before Commissioner (Appeals) where as proposed State Goods And Services Tax Act, 2016  provides for revision of order of lower authority by Commissioner.  Accordingly, proposed Central Goods And Services Tax Act, 2016 does not have  Sections 84 to Section 93 which are specific to proposed State Goods And Services Tax Act, 2016 .

Other than above, with minor corresponding changes in terms of their applicable taxes, both the Acts are same.

Scheme of Model Integrated GST Law

The proposed Integrated Goods And Services Tax Act, 2016 consists of 11 Chapters comprising of 33 Sections.  The broad scheme of the Act is as follows:

Statecommissioneratedivision range jurisdiction
West BengalKolkata-NorthBarasat DivisionRANGE-IKalyannagar Municipality, Amdanga Block and Deganga Block, Ashoknagar Municipality and Habra I & II Blocks and Habra and Gobardanga Municipalities
West BengalKolkata-NorthBarasat DivisionRANGE-IIBarasat Municipality and Barasat I & II Blocks and Madhyamgram Municipality and Rajarhat Block (except Municipality and New Town Kolkata Development Area)
West BengalKolkata-NorthBarasat DivisionRANGE-IIIBasirhat Municipality and Basirhat I & II Blocks, Baduria Municipality and Baduria and Swarupnagar Blocks, Harwa and Minakhan Blocks, Taki Municipality and Hasnabad Block and Sandeshkhali I & II and Hingalgunj Blocks
West BengalKolkata-NorthBarasat DivisionRANGE-IVBangaon Municipality and Bongaon Block
West BengalKolkata-NorthBarasat DivisionRANGE-VBagda Block, Gaighata Block except the Gram Panchayats of Chandpara, Simulpur and Dhakuria and Gram Panchayats of Chandpara, Simulpur and Dhakuria in the Gaighata Block

 

 

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