Structure of GST Law

Back

Laws under GST in India

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

Name of Tax to be levied Governing Act Governed by Number of Acts in India Governs
Central GST Central GST Act Central Government One Levy of Centre’s portion of GST in case of intra state Supply
(Name of State) GST e.g. Delhi GST, Haryana GST etc (Name of State) GST Act e.g. Delhi GST Act, Haryana GST Act, Maharashtra GST Act etc Respective State Governments One for each state (State includes UT with legislature)

= 29+2 = 31 Acts

Levy of State’s portion of GST in case of intra state Supply
Integrated GST Integrated GST Act Central Government One Levy of GST in case of inter state Supply
UTGST Act The Union Territory Goods And Services Tax Act Central Government One Levy of GST in case of intra state supply in Union Territories
Compensation Act The Goods And Services Tax (Compensation To States) Central Government One For provision of payment of compensation to States

Above details are summarized as under:

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:

Scheme of Central GST Act, 2017

Central GST bill comprise of XXI Chapters which consist 174 Sections and 3 Schedules. The broad scheme of the Act is as follows:

Chapter I          :           Preliminary

Chapter II          :           Administration

Chapter III         :           Levy and collection of tax

Chapter IV         :           Time and value of supply

Chapter V         :           Input tax credit

Chapter VI         :           Registration

Chapter VII        :           Tax invoice, credit and debit notes

Chapter VIII       :           Accounts and records

Chapter IX         :           Returns

Chapter X         :           Payment of tax

Chapter XI         :           Refunds

Chapter XII        :           Assessment

Chapter XIII       :           Audit

Chapter XIV      :           Inspection, search, seizure and arrest

Chapter XV       :           Demands and recovery

Chapter XVI      :           Liability to pay in certain cases

Chapter XVII      :           Advance ruling

Chapter XVIII     :           Appeals and revision

Chapter XIX      :           Offences and penalties

Chapter XX       :           Transitional provisions

Chapter XXI      :           Miscellaneous

Apart from the above law, there would be set of Rules and documents to assist a tax payer.  All Acts shall be having a subservient set of Rules.  Accordingly, the following Rules are as under:

  • CGST Rules, 2017
  • SGST Rules, 2017 (for respective states)
  • IGST Rules, 2017 – CGST Rules made applicable on IGST

Scheme of The Union Territory GST Act, 2017

UTGST bill comprise of IX Chapters which consist 26 Sections. The broad scheme of the Act is as follows:

Chapter I           :           Preliminary

Chapter II          :           Administration

Chapter III         :           Levy And Collection Of Tax

Chapter IV         :           Payment Of Tax

Chapter V         :           Inspection, Search, Seizure And Arrest

Chapter VI         :           Demands And Recovery

Chapter VII        :           Advance Ruling

Chapter VIII       :           Transitional Provisions

Chapter IX         :           Miscellaneous

Scheme of The Integrated GST Act, 2017

Integrated GST bill comprise of IX Chapters which consist 25 Sections. The broad scheme of the Act is as follows:

Chapter I           :           Preliminary

Chapter II          :           Administration

Chapter III         :           Levy and Collection of Tax

Chapter IV         :           Determination of Nature of Supply

Chapter V         :           Place Of Supply Of Goods Or Services Or Both

Chapter VI         :           Refund of Integrated Tax To International Tourist

Chapter VII        :           Zero Rated Supply

Chapter VIII       :           Apportionment of Tax And Settlement Of Funds

Chapter IX         :           Miscellaneous

Brief understanding of GST law

In brief we hereunder discuss the key features of the Model GST law and the reference of the Chapters wherein detail of such modules can be found.  We shall try to address the following queries in this brief of GST law:

Each of the element is a very important ingredient of the new GST law and thus, understanding each of the above element is essential to understand the law as a whole.  We shall discuss each of the element in the next chapters.

Back

Print Friendly, PDF & Email