ENABLINGGVATPRACTICE

CA.ABHAYDESAIYagnesh Desai & Co.YagneshDesai&Co.

BACKGROUNDBACKGROUND

WHITE PAPERWHITEPAPER GVATACT,2003G S 2006 GVATRULES,2006

NOTIFICATIONS CIRCULARS

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AGENDAAGENDA

WHO ?WHO? WHEN?

? WHAT? HOWMUCH?

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WHO ?WHO?

DEALER (Sec 2(10))DEALER(Sec.2(10)) Person(Sec.2(15))

i i h i id l (S Business inthecourseorincidental(Sec.2(4))

Sellsgoodsforaconsideration(Sec.2(23))

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AUCTIONEERAUCTIONEER

Federal Bank Ltd. and others Vs. State ofFederalBankLtd.andothersVs.StateofKerala[2007]006VST0736(SC)

Sec.2(10)(c)Dealerincludesanauctioneer,who sells or auctions goods belonging to anywhosellsorauctionsgoodsbelongingtoanyprincipalwhetherdisclosedornotandwhethertheofferoftheintendingpurchaserisacceptedbyhimorbytheprincipaloranomineeofprincipal

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BUSINESSTRANSFERREDAFTERCLOSURE

State of Gujarat Vs Sayaji Mills [2008] 011 VSTStateofGujaratVs.SayajiMills[2008]011VST0650(Guj.)

dealer means any person who for the dealer meansanypersonwho,forthepurposeoforconsequentialtohisengagement in or in connection with orengagementinor,inconnectionwithorincidentaltoorinthecourseofhisbusinessbuysbuys.

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GOVERNMENTGOVERNMENT CollectorofCentralExcise&CustomsVs.StateofKerala [2008] 011 VST 0932 (Ker)Kerala[2008]011VST0932(Ker)

Sec.2(10)(a)DealerincludestheCentralGovernment or a State Government or any localGovernmentoraStateGovernmentoranylocalauthoritysuchasmunicipalityormunicipalcorporationorpanchayat,astatutoryauthority,acompany,apartnershipfirm,aHinduUndividedFamilyoranysociety,club,associationorbody,incorporated or not of persons which carries onincorporatedornot,ofpersonswhichcarriesonbusiness;

Union of India Vs State of MP [2006] 146 STCUnionofIndiaVs.StateofMP[2006]146STC213(MP)

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CHARITABLE ORGANIZATIONCHARITABLEORGANIZATION NehruFoundationForDevelopment(2007GSTB171)NotaDealer

Followingshallnotbedeemedtobedealer:acharitable, religious or educational institution, carryingcharitable,religiousoreducationalinstitution,carryingontheactivityofmanufacturing,buying,sellingorsupplyinggoods,inperformanceofitsfunctions,forachieving its avowed objects, which are not in theachievingitsavowedobjects,whicharenotinthenatureofbusiness

Salebychemistsinhospital Dealer2011GSTB37T d l i i i f b i 2011 Trustadealerasactivityinnatureofbusiness2011GSTB327

Schoolprovidingfood Notadealer(42VST530)p g ( )

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WORKS CONTRACTORWORKSCONTRACTOR

Dealer includes any person who transfersDealerincludesanypersonwhotransferspropertyingoods(whetherasgoodsorinsome other form) involved in the execution ofsomeotherform)involvedintheexecutionofworkscontract

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RIGHT TO USERIGHTTOUSE

Dealer includes any person who transfers theDealerincludesanypersonwhotransferstherighttouseanygoodsforanypurpose(whether or not for a specified period) for(whetherornotforaspecifiedperiod)forcash,deferredpaymentorothervaluableconsiderationconsideration

ONGCLtd.(31VST337)(Gau.)[2010]C l i h f f i h Controlwithowner nottransferofrighttouse RuperaTransport 2009GSTB504

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CLUBSCLUBS

A society (including a cooperative society) clubAsociety(includingaco operativesociety),cluborfirmoranassociation,which,whetherornotinthecourseofbusiness,buys,sells,suppliesorf , y , , ppdistributesgoods,directlyorotherwise,fromortoitsmembersorotherpersonsforcash,deferredpayment,commission,remunerationorothervaluableconsideration,shallbedeemedtobedealerforthepurposeofthisAct.

GangesClubLtd.(33VST537)(All.)[2010]

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AGENTSAGENTS

Dealer includes a factor broker commissionDealerincludesafactor,broker,commissionagent,delcredereagentoranauctioneerorany mercantile agent by whatever nameanymercantileagent,bywhatevernamecalled,whocarriesonbusinessonbehalfofany principal whether disclosed or not;anyprincipalwhetherdisclosedornot;

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WHEN ?WHEN?

GOODSGOODS SALE LIMIT TURNOVERWITHINTHESTATE

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GOODS (Sec. 2(13))GOODS(Sec.2(13))

All kinds of movable propertyAllkindsofmovableproperty Propertyinvolvedinexecutionofworkscontractcontract

Intangiblecommodities(copyright,patent,T d k B d I LiTrademarks,Brandname,ImportLicence,Goodwill,Technicalknowhow,exportpermit

DEPB C b C di )orquota,DEPB,CarbonCredit.)

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GOODS (Contd.)GOODS(Contd.)

Things permanently fastened to anythingThingspermanentlyfastenedtoanythingattachedtoearthnotgoods(87STC544)(WBTT)/2011GSTB282

SaleofMachineryattachedtoearthnotgoods Shilpi International(2006GSTB213)

ImportLicenseisgoods(109STC286)(KeralaHC)

SIMCards notgoods BSNL(49VST98)(APHC)[2012]/2012GSTB365

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SALE (Sec. 2(23))SALE(Sec.2(23))1)Usualsale SaleofGoodsAct,1930) ,2)Transfer,otherwisethaninpursuanceofcontract compulsorytransfers)3)Transferofpropertyingoodsinvolvedinexecutionofaworkscontract

4)Delivery of goods on hire purchase4)Deliveryofgoodsonhirepurchase5)Transferoftherighttouseanygoods6) Supply of goods to members6)Supplyofgoodstomembers7)Supplyofgoodsaspartofservice8)Disposalofconfiscatedorunserviceablegoods) p g

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SALE (Contd.)SALE(Contd.)

Development of software Not sale SaskenDevelopmentofsoftware Notsale SaskenCommunicationTechnologiesLtd.(55VST89)(KarnatakaHC)[2012]

Licensetousenotsale BSNL(3STT245)(SC)[2006]

Merephysicaltransferofgoodstoagentsnotsale Havells India(31VST20)(Del.)[2010]

Insuranceclaim Notsale Vaniya SilkMillsAIR1991SC2104/2012GSTB1147

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LIMIT (Sec. 3)LIMIT(Sec.3)

Total turnover exceeds Rs 5 00 000 andTotalturnoverexceedsRs.5,00,000andtaxableturnoverexceedRs.10,000incurrentyearyear

Incaseofcasualdealerorauctioneer,liableincase taxable turnover exceed Rs 10 000casetaxableturnoverexceedRs.10,000.

Remainliabletillexpiryofoneyearwherei b l h h ld li iturnoverisbelowthresholdlimits

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TURNOVER WITHIN THE STATE (Sec. 4)TURNOVERWITHINTHESTATE(Sec.4)

Excluded:Excluded:1)Interstatesale2) O id h S2)OutsidetheState3)Export

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WHAT ?WHAT?

SALE PRICESALEPRICE

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SALE PRICE (Sec. 2(24))SALEPRICE(Sec.2(24))

Amount of valuable consideration paid orAmountofvaluableconsiderationpaidorpayable

Including the amount of duties lived orIncludingtheamountofdutieslivedorleviable undertheCentralExciseTariffAct,1985ortheCustomsAct,1962

Anysumchargedforanythingdonebythedealerinrespectofthegoodsatthetimeoforbeforedeliverythereof

Workscontract Deductlabour charges

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SALE PRICE (Contd.)SALEPRICE(Contd.)

Handling charges for registration of vehicles Handlingchargesforregistrationofvehiclesnotpartofsaleprice Sehgal Autoriders Pvt.Ltd.(43VST398)(BombayHC)[2011]/2012GSTB155

Saleexfactory Chargescollectedfortransportseparately NotpartofpriceBengalElectricWorks 2007GSTB258

Servicesprovidedpostsale notincludedAdani ExportsLtd.2007GSTB280

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HOWMUCH ?HOWMUCH?

EXEMPTIONSEXEMPTIONS ZERORATEDSALES

S SC & ASPERSCHEDULEII&III ADJUSTMENTINTAX NETAMOUNTTOBEPAID

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EXEMPTIONSEXEMPTIONS

SCHEDULE I Sec 5(1)SCHEDULE ISec.5(1) NOTIFICATIONSu/sSec.5(1A)

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ZERORATED SALES (Sec. 5A)ZERO RATEDSALES(Sec.5A)

CoversCovers1)SaleofgoodstotheDeveloperorCodeveloper of Special Economic ZonedeveloperofSpecialEconomicZone

2)Saleofgoodstoaunitcarryingonitsbusinessi h iintheprocessingarea

GoodscontainedinScheduleIIInotzerorated

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SCHEDULE II & IIISCHEDULEII&III

Rates set against each goodsRatessetagainsteachgoods Includesadditionaltax(Sec.7(1A))

f ki i l (S 0) Rateoftaxonpackingmaterial(Sec.10)

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ADJUSTMENTSADJUSTMENTS

Sec 8 read with Rule 43Sec.8readwithRule431)Salecancelled Notimelimit2) l i i l i O2)Alterationinsaleprice Oneyear3)Salesreturn SixMonths

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REJECTION Vs. RETURNREJECTIONVs.RETURN

Metal Alloy Company Pvt Ltd (39 STCMetalAlloyCompanyPvt.Ltd.(39STC404)[1977](CalcuttaHC)

Bil Metal Industries 2010 GSTB 307 BilMetalIndustries2010GSTB307

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NET AMOUNT TO BE PAID (Sec. 13)NETAMOUNTTOBEPAID(Sec.13)

Net Amount payable = Gross Tax on Sales NetAmountpayable=GrossTaxonSalesAdjustmentsinsale EligibleInputTaxCredit

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PURCHASE TAX (Sec. 9)PURCHASETAX(Sec.9)

Purchases from unregistered dealersPurchasesfromunregistereddealers Asperratessetinschedule

h i S PurchasesinSEZ Actualpaymentnotrequired

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PURCHASES IN SEZPURCHASESINSEZ PurchaseTaxpayableif:1)GoodsBToutsideState2)RM&PMforgoodsBToutsideState3) Fuel in manufacture3)Fuelinmanufacture4)Manufactureofexemptedgoods5)Capitalgoodsingenerationofelectricalenergy6)Notconnectedwithbusiness7)Fuelinmotorvehicles8) Capital goods in works contract8)Capitalgoodsinworkscontract9)Transferringrighttouse10)Anyother

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ACTUAL PAYMENT NOT REQUIREDACTUALPAYMENTNOTREQUIRED

Explanation to Rule 15(5) For the purpose ofExplanationtoRule15(5) Forthepurposeofcalculatingthetaxcredit,theamountoftaxunder subsection (1) (5) or (6) of section 9 ofundersub section(1),(5)or(6)ofsection9oftheActortheamountoftaxundertheGujaratTax on Entry of Specified Goods into LocalTaxonEntryofSpecifiedGoodsintoLocalAreasAct,2001isshownpayablebythedealer in his return for a tax period then suchdealerinhisreturnforataxperiod,thensuchamountoftaxshallbeconsideredtohavebeen paid In such tax periodbeenpaidInsuchtaxperiod.

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SUMMARYSUMMARY

Who ?Who? When?

h ? What? Howmuch?

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THANKS !!

CA ABHAY DESAI

THANKS!!

CA.ABHAYDESAIM:7874668953EMAIL: ABHAYDESAI86@GMAIL COMEMAIL:ABHAYDESAI86@GMAIL.COM

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