1. Revised Model Law
IGST
CA. Bikash Gupta

2. Sec 5: Levy and collection of Integrated Goods and Services Tax
(1) There shall be levied a tax called the Integrated Goods and Services Tax on all supplies of goods and/or services made in the course of inter-State trade or commerce on the value determined under section 15 of CGST Act, 2016 and at such rates as may be notified by the Central Government in this behalf, but not exceeding twenty eight percent, on the recommendation of Council and collected in such manner as may be prescribed and shall be paid by every taxable person in accordance with the provisions of this Act.

3. CHAPTER- II
PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER-STATE TRADE OR COMMERCE

4. Location of Supplier & Place of Supply
Sec 3: Supplies of goods and/or services in the course of inter-State trade or commerce
Supply
Location of Supplier & Place of Supply
Status
Supply of goods
In different states
Inter-state supply
Supply of service
Deemed inter state supply –
Import of goods and services,
Export of goods and services (when supplier is located in India and place of supply is outside India)
Supply of goods and / services to or by a SEZ developer/ an SEZ unit.

5. Location of Supplier & Place of Supply
Sec 4: Supplies of goods and/or services in the course of intra-State trade or commerce
Supply
Location of Supplier & Place of Supply
Status
Supply of goods
In same states
Intra-state supply
Supply of service
Intra-State supply shall not include–
Import of goods,
Supply of goods and / services to or by a SEZ developer/ an SEZ unit.

6. Definition of location of supplier:
Event
Location of supplier
(a) Supply made from a place of business for which registration has been obtained
Location of such place of business.
(b) Supply made from a place other than (a), like a fixed establishment-
Location of such fixed establishment
(c ) Supply made from more than one establishment
Location of establishment most directly concerned with the provision of supply
(d) In absence of such place
Location of usual place of residence of the supplier

7. Definition of location of recipient:
Event
Location
(a) Supply received at a place of business for which registration has been obtained
Location of such place of business.
(b) Supply received at a place other than (a), like a fixed establishment-
Location of such fixed establishment
(c ) Supply received at more than one establishment
Location of establishment most directly concerned with the provision of supply
(d) In absence of such place
Location of usual place of residence of the supplier

8. Place of Supply of Goods and Services within India

9. Sec 7: Place of supply of goods other than supply of goods imported into, or exported from India
Event
Place of Supply
Supply of goods involve movement of goods
Location of the goods at the time at which movement of goods terminates for delivery to the recipient.
Supply of goods does not involve movement of goods
Location of the goods at the time of delivery to the recipient.
Delivery of goods on the direction of third party
Deemed the third party has received the goods and POS = principal place of business of such third party.
Assembled / installed at site
Place of such assembly / installation.
Supply of goods on board a conveyance (like vessel, aircraft, train)
Location at which such goods are taken on board

10. Sec 9: Place of supply of services where the location of supplier of service and the location of the recipient of service is in India
Service
To registered person
Location of such person
To Others
(a) Address on record exists
Location of recipient
(b) Other
Location of supplier

11. Service related to immovable property
Directly in relation to an immovable property – architects service, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work
Lodging accommodation by a hotel, inn, guest house, homestay, club or campsite
Accommodation in any immovable property – for organizing any function,
Any services ancillary to the above services
Place of supply = location of immovable property
Immovable property located outside India = POS – location of the recipient.

12. Service related to immovable property
Explanation: Where the immovable property or boat or vessel is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.

13. Performance based service
Fitness
Beauty treatment
Personal Grooming
Restaurant & catering services
Health Services including cosmetic & plastic surgery
Place of performance of service.

14. Training & performance appraisal service
Performance based service
Training & performance appraisal service
To a registered person
To a person other than a registered person
POS = location of the recipient
POS = location where the services are actually performed

15. Event based services
Cultural, artistic, sporting, scientific, educational, or entertainment event
Admission
Place where event is held or place is located
Organization
To registered person
Location of such person
To others
Where event is held
If event held outside India, location of recipient shall be the place of supply

16. Transportation Service
Service of Transportation
Of goods
To registered person
Location of such person
To Others
Where goods handed over for transportation
Of passenger
Where he embarks for journey

17. Transportation Service
Right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage –
Place of supply – default provision shall apply.

18. Telecommunication Service
Telecommunication Services
(a) Fixed line
Where line is installed
(b) & (c) Mobile connection
Post paid
Billing address
Pre-paid
Online
Place of supply of service
Through selling agent/re-seller/distributor
Location of such person
By any person
Where payment is received
(d) Others caes
Address of recipient

19. Telecommunication Service
Issues:
What will be the Place of Supply of service for the inbound tourists?
Whether such service shall be treated as export of service?
Circular No – 90/1/2007-ST, dated – service tax is payable by the domestic telecom operator on amount received through home network of the subscriber on account of service provided to such international roaming subscriber.
Vodafone Essar Cellular Ltd (Tri - Mumbai) – view of circular not accepted – service is provide to the foreign telecom network operator and not to their customers. Hence it is export of service. Customer’s customer is not your customer.

20. Telecommunication Service
Issues:
What will be the Place of Supply of service for the inbound tourists?
Whether such service shall be treated as export of service?
Circular No – 90/1/2007-ST, dated – service tax is payable by the domestic telecom operator on amount received through home network of the subscriber on account of service provided to such international roaming subscriber.
Vodafone Essar Cellular Ltd (Tri) – view of circular not accepted – service is provide to the foreign telecom network operator and not to their customers. Hence it is export of service. Customer’s customer is not your customer.

21. Banking Service Location of the recipient of service
Is in the records of the supplier of services
Is not in the records of the supplier of services
POS = location of the recipient
POS = location of the supplier

22. Insurance Service Service provided
To a registered person
To a person other than a registered person
POS = location of the recipient
POS = location of the recipient on the records of the supplier

23. Place of Supply: Import and Export of Goods and Services

24. Some important definitions
“export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;
“export of services” means the supply of any service when
(a) the supplier of service is located in India,
(b) the recipient of service is located outside India,
(c) the place of supply of service is outside India,
(d) the payment for such service has been received by the supplier of service in convertible foreign exchange, and
(e) the supplier of service and recipient of service are not merely establishments of a distinct person in accordance with explanation 1 of section 5;

25. Some important definitions
“import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India.
“import of service” means the supply of any service, where
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India, and
(c) the place of supply of service is in India.

26. Sec 8: Place of supply of goods imported into, or exported from India
Import of goods
Export of goods
POS = location of the importer
POS = location outside India

27. Sec 10: Place of supply of services where the location of the supplier or the location of the recipient is outside India
General provision:
Location of recipient
If not available then
Location of supplier

28. Performance based service
Services provided
in respect of goods req to be made physically available
to an individual that require the presence of receiver
Place of performance
POS = location where the services are actually performed.
Service by way of electronic means: POS = location of the goods at the time of supply of service
Goods temporarily imported into India for repair and re-exported: POS = in terms of general provision

29. Other service Supply of services Place of Supply
Directly in relation to immovable property
Where the immovable property is located or intended to be located
Event based
Where such event is actually held
Partly in taxable territory and partly in non-taxable territory
Location in the taxable territory where the greatest proportion of the service
is provided
Provided in more that one state
each of the States in proportion to the value of services so provided (as per contract or agreement entered)
If contract not available – other reasonable basis (may be prescribed)
Banking service
Location of the supplier
Intermediary service
Location of supplier

30. Other service Supply of services Place of Supply
Transportation of goods (other than by way of mail or courier)
Place of destination of the goods
Transportation of passenger
Place where the passenger embarks on the conveyance.
On board a conveyance during the course of a passenger transport operation
First schedule point of departure of that conveyance for the journey.
Online information and database access or retrieval service
Location of recipient of service.

31. Sec 11: Payment of tax, interest, penalty and other amounts.
Deposit of tax, interest, penalty, fee or other amount by a taxable person through internet banking, NEFT, RTGS, Debit/ Credit Cards or any other mode shall be credited to electronic cash ledger of such taxable person.
ITC as self assessed in the return shall be credited to his electronic credit ledger
Amount available in electronic cash ledger may be used for payment of tax, interest, penalty, fees or any other amount in the prescribed manner & condition and within such time period as may be prescribed.

32. Sec 11: Payment of tax, interest, penalty and other amounts.
Amount available in electronic credit ledger may be used only for payment of output tax payable in the prescribed manner & condition and within such time period as may be prescribed
Section 2(71) of the CGST Act: ”output tax” in relation to a taxable person, means the CGST/SGST chargeable under this Act on taxable supply of goods and/or services made by him or by his agent and excludes tax payable by him on reverse charge basis.

33. Manner of utilization of ITC Input Tax Credit IGST CGST SGST
Contd ….
Manner of utilization of ITC Input Tax Credit IGST CGST SGST
1st: payment of IGST
2nd:payment of CGST
3rd: payment of SGST
1st: payment of CGST
2nd:payment of IGST
NOT TO UTILIZE FOR SGST
1st: payment of SGST
2nd:payment of IGST
NOT TO UTILIZE FOR CGST

34. Sec 12: Special provision for payment of tax by a supplier of online information and database access or retrieval service located outside India to specified person in taxable territory
Supplier of service – in non-taxable territory
Recipient of service – non-taxable online recipient
Person liable to pay tax = supplier of service located in non-taxable territory.
Supplier to take single registration under a Simplified Registration Scheme.
Representative, if any, in taxable territory = Representative to take registration for payment of IGST
If NO representative in taxable territory = supplier may appoint a person in the taxable territory for the purpose of paying IGST.

35. Sec 13: Claim of ITC, provisional acceptance, matching, reversal and reclaim of ITC or reduction in output tax liability
Every registered taxable person shall be entitled to take credit of input tax on a provisional basis.
Credit referred in (1) shall be utilized only for payment of output tax liability
Provisions of Sec 37 and 38 of the CGST Act, 2016 shall apply mutatis mutandis.

36. Sec 16: Zero rated supply
(1) Zero-rated supply
Export of goods/service
Supply of goods/services to SEZ
(2) Subject to the provisions of sub-section 3 of section 17 of the CGST Act, ITC maybe availed for making zero-rated supplies.

37. Cont...
Export of goods/services
Export without payment of IGST
Option 1
Claim refund of unutilized ITC
Export on payment of IGST
Option 2
Claim refund of IGST paid on such exports
(4) The SEZ developer or SEZ unit receiving zero rated supply shall be eligible to claim refund of IGST paid by the registered taxable person

38. Zero rated sale:
As per WBVAT Act
As per Sec 2(59) “zero rated sales” means sale of any goods on which no tax is chargeable but credit for that input tax related to that sale is admissible.
Sec 21A zero-rated sale:
Notwithstanding anything contained in Sec 16 or 16A, sale of goods between persons, whether dealer or not, or organisations as specified in column (2) of Schedule AA, shall be zero rated as defined in clause (59) of Sec 2.
Where goods are sold in the course of export within the meaning of Sec 5 of the Central Sales Tax Act, 1956(74 of 1956), such sales shall be zero-rated as defined in clause(59) of Sec 2

39. List of goods which shall be zero-rated.
Schedule AA
List of goods which shall be zero-rated.

40. Sec 19: Tax wrongfully collected and deposited with the central or a state government.
IGST paid instead of CGST/SGST
Refund of IGST so paid
As per Sec 70 of CGST Act, no interest on amount of CGST/SGST payable
CGST/SGST paid instead of IGST
No interest on the amount of IGST payable
As per Sec 70 of CGST Act, refund of the amount so paid

41. Email id: bikash.ca.gupta@gmail.com
Thank You
Presentation by
CA. Bikash Gupta
(M) –
id: