ENABLINGGVATPRACTICE

CA.ABHAYDESAI
Yagnesh Desai & Co.
YagneshDesai&Co.

BACKGROUND

WHITEPAPER
WHITE
PAPER
GVATACT,2003
G
GVATRULES,2006
S 2006
NOTIFICATIONS
CIRCULARS

CA.ABHAYDESAI

AGENDA

WHO??
WHO
WHEN?
WHAT??
HOWMUCH?

CA.ABHAYDESAI

WHO ?
WHO?
DEALER(Sec.2(10))
DEALER
(Sec 2(10))
Person(Sec.2(15))
Business
i
i h
inthecourseorincidental(Sec.
i id
l (S
2(4))
Sellsgoodsforaconsideration(Sec.2(23))

CA.ABHAYDESAI

AUCTIONEER
Federal
FederalBankLtd.andothersVs.Stateof
Bank Ltd. and others Vs. State of
Kerala[2007]006VST0736(SC)
Sec.2(10)(c)Dealerincludesanauctioneer,
who sells or auctions goods belonging to any
whosellsorauctionsgoodsbelongingtoany
principalwhetherdisclosedornotand
whethertheofferoftheintendingpurchaseris
acceptedbyhimorbytheprincipalora
nomineeofprincipal
CA.ABHAYDESAI

BUSINESSTRANSFERREDAFTER
CLOSURE
State
StateofGujaratVs.SayajiMills[2008]011VST
of Gujarat Vs Sayaji Mills [2008] 011 VST
0650(Guj.)
dealer
dealer meansanypersonwho,forthe
means any person who for the
purposeoforconsequentialtohis
engagement in or in connection with or
engagementinor,inconnectionwithor
incidentaltoorinthecourseofhisbusiness
buys.
buys

CA.ABHAYDESAI

GOVERNMENT
CollectorofCentralExcise&CustomsVs.Stateof
Kerala [2008] 011 VST 0932 (Ker)
Kerala[2008]011VST0932(Ker)
Sec.2(10)(a)DealerincludestheCentral
Government or a State Government or any local
GovernmentoraStateGovernmentoranylocal
authoritysuchasmunicipalityormunicipal
corporationorpanchayat,astatutoryauthority,a
company,apartnershipfirm,aHinduUndivided
Familyoranysociety,club,associationorbody,
incorporated or not of persons which carries on
incorporatedornot,ofpersonswhichcarrieson
business;
Union of India Vs State of MP [2006] 146 STC
UnionofIndiaVs.StateofMP[2006]146STC
213(MP)
CA.ABHAYDESAI

CHARITABLE ORGANIZATION
CHARITABLEORGANIZATION
NehruFoundationForDevelopment(2007GSTB171)
NotaDealer
Followingshallnotbedeemedtobedealer:a
charitable, religious or educational institution, carrying
charitable,religiousoreducationalinstitution,carrying
ontheactivityofmanufacturing,buying,sellingor
supplyinggoods,inperformanceofitsfunctions,for
achieving its avowed objects, which are not in the
achievingitsavowedobjects,whicharenotinthe
natureofbusiness
Salebychemistsinhospital Dealer2011GSTB37
Trustadealerasactivityinnatureofbusiness2011
T
d l
i i i
fb i
2011
GSTB327
Schoolprovidingfood
p
g
Notadealer(42VST530)
(
)
CA.ABHAYDESAI

WORKS CONTRACTOR
WORKSCONTRACTOR
Dealer
Dealerincludesanypersonwhotransfers
includes any person who transfers
propertyingoods(whetherasgoodsorin
some other form) involved in the execution of
someotherform)involvedintheexecutionof
workscontract

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RIGHT TO USE
RIGHTTOUSE
Dealer
Dealerincludesanypersonwhotransfersthe
includes any person who transfers the
righttouseanygoodsforanypurpose
(whether or not for a specified period) for
(whetherornotforaspecifiedperiod)for
cash,deferredpaymentorothervaluable
consideration
ONGCLtd.(31VST337)(Gau.)[2010]
Controlwithowner
C
l ih
nottransferofrightto
f
f i h
use RuperaTransport 2009GSTB504
CA.ABHAYDESAI

CLUBS
A
Asociety(includingaco
society (including a cooperative
operativesociety),club
society) club
orfirmoranassociation,which,whetherornotin
thecourseofbusiness,buys,sells,suppliesor
f
, y,
, pp
distributesgoods,directlyorotherwise,fromor
toitsmembersorotherpersonsforcash,deferred
payment,commission,remunerationorother
valuableconsideration,shallbedeemedtobe
dealerforthepurposeofthisAct.
GangesClubLtd.(33VST537)(All.)[2010]
CA.ABHAYDESAI

AGENTS
Dealer
Dealerincludesafactor,broker,commission
includes a factor broker commission
agent,delcredereagentoranauctioneeror
any mercantile agent by whatever name
anymercantileagent,bywhatevername
called,whocarriesonbusinessonbehalfof
any principal whether disclosed or not;
anyprincipalwhetherdisclosedornot;

CA.ABHAYDESAI

WHEN ?
WHEN?

GOODS
SALE
LIMIT
TURNOVERWITHINTHESTATE

CA.ABHAYDESAI

GOODS (Sec. 2(13))

GOODS(Sec.2(13))
All
Allkindsofmovableproperty
kinds of movable property
Propertyinvolvedinexecutionofworks
contract
Intangiblecommodities(copyright,patent,
T d
Trademarks,Brandname,ImportLicence,
k B d
I
Li
Goodwill,Technicalknowhow,exportpermit
orquota,DEPB,CarbonCredit.)
DEPB C b C di )

CA.ABHAYDESAI

GOODS (Contd.)
GOODS(Contd.)
Things
Thingspermanentlyfastenedtoanything
permanently fastened to anything
attachedtoearthnotgoods(87STC544)
(WBTT)/2011GSTB282
SaleofMachineryattachedtoearthnot
goods Shilpi International(2006GSTB213)
ImportLicenseisgoods(109STC286)(Kerala
HC)
SIMCards notgoods BSNL(49VST98)(AP
HC)[2012]/2012GSTB365
CA.ABHAYDESAI

SALE (Sec. 2(23))

SALE(Sec.2(23))
1)Usualsale
)
SaleofGoodsAct,1930
,
2)Transfer,otherwisethaninpursuanceofcontract
compulsorytransfers
3)Transferofpropertyingoodsinvolvedin
)
executionofaworkscontract
4)Delivery of goods on hire purchase
4)Deliveryofgoodsonhirepurchase
5)Transferoftherighttouseanygoods
6) Supply of goods to members
6)Supplyofgoodstomembers
7)Supplyofgoodsaspartofservice
) p
g
8)Disposalofconfiscatedorunserviceablegoods
CA.ABHAYDESAI

SALE (Contd.)
SALE(Contd.)
Development
Developmentofsoftware
of software Notsale
Not sale Sasken
CommunicationTechnologiesLtd.(55VST89)
(KarnatakaHC)[2012]
Licensetousenotsale BSNL(3STT
245)(SC)[2006]
Merephysicaltransferofgoodstoagentsnot
sale Havells India(31VST20)(Del.)[2010]
Insuranceclaim Notsale Vaniya SilkMills
AIR1991SC2104/2012GSTB1147
CA.ABHAYDESAI

LIMIT (Sec. 3)
LIMIT(Sec.3)
Total
TotalturnoverexceedsRs.5,00,000and
turnover exceeds Rs 5 00 000 and
taxableturnoverexceedRs.10,000incurrent
year
year
Incaseofcasualdealerorauctioneer,liablein
case taxable turnover exceed Rs 10 000
casetaxableturnoverexceedRs.10,000.
Remainliabletillexpiryofoneyearwhere
turnoverisbelowthresholdlimits
i b l
h h ld li i

CA.ABHAYDESAI

TURNOVER WITHIN THE STATE (Sec. 4)

TURNOVERWITHINTHESTATE(Sec.4)
Excluded:
1)Interstatesale
2) O id h S
2)OutsidetheState
3)Export

CA.ABHAYDESAI

WHAT ?
WHAT?
SALEPRICE
SALE PRICE

CA.ABHAYDESAI

SALE PRICE (Sec. 2(24))

SALEPRICE(Sec.2(24))
Amount
Amountofvaluableconsiderationpaidor
of valuable consideration paid or
payable
Includingtheamountofdutieslivedor
Including the amount of duties lived or
leviable undertheCentralExciseTariffAct,
1985ortheCustomsAct,1962
Anysumchargedforanythingdonebythe
dealerinrespectofthegoodsatthetimeof
orbeforedeliverythereof
Workscontract Deductlabour charges
CA.ABHAYDESAI

SALE PRICE (Contd.)

SALEPRICE(Contd.)
Handling
Handlingchargesforregistrationofvehicles
charges for registration of vehicles
notpartofsaleprice Sehgal Autoriders Pvt.
Ltd.(43VST398)(BombayHC)[2011]/2012
GSTB155
Saleexfactory Chargescollectedfor
transportseparately Notpartofprice
BengalElectricWorks 2007GSTB258
Servicesprovidedpostsale notincluded
Adani ExportsLtd.2007GSTB280
CA.ABHAYDESAI

HOW MUCH ?
HOWMUCH?

EXEMPTIONS
EXEMPTIONS
ZERORATEDSALES
ASPERSCHEDULEII&III
S
SC
&
ADJUSTMENTINTAX
NETAMOUNTTOBEPAID

CA.ABHAYDESAI

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

CA.ABHAYDESAI

ZERORATED
ZERO
RATEDSALES(Sec.5A)
SALES (Sec. 5A)
Covers
1)SaleofgoodstotheDeveloperorCo
developer of Special Economic Zone
developerofSpecialEconomicZone
2)Saleofgoodstoaunitcarryingonitsbusiness
i h
intheprocessingarea
i
GoodscontainedinScheduleIIInotzerorated

CA.ABHAYDESAI

SCHEDULE II & III

SCHEDULEII&III
Rates
Ratessetagainsteachgoods
set against each goods
Includesadditionaltax(Sec.7(1A))
Rateoftaxonpackingmaterial(Sec.10)
f
ki
i l (S
0)

CA.ABHAYDESAI

ADJUSTMENTS
Sec.8readwithRule43
Sec 8 read with Rule 43
1)Salecancelled Notimelimit
2) l
2)Alterationinsaleprice
i i
l
i
O
Oneyear
3)Salesreturn SixMonths

CA.ABHAYDESAI

REJECTION Vs. RETURN

REJECTIONVs.RETURN
Metal
MetalAlloyCompanyPvt.Ltd.(39STC
Alloy Company Pvt Ltd (39 STC
404)[1977](CalcuttaHC)
BilMetalIndustries2010GSTB307
Bil Metal Industries 2010 GSTB 307

CA.ABHAYDESAI

NET AMOUNT TO BE PAID (Sec. 13)

NETAMOUNTTOBEPAID(Sec.13)
Net
NetAmountpayable=GrossTaxonSales
Amount payable = Gross Tax on Sales
Adjustmentsinsale EligibleInputTaxCredit

CA.ABHAYDESAI

PURCHASE TAX (Sec. 9)

PURCHASETAX(Sec.9)

Purchasesfromunregistereddealers
Purchases
from unregistered dealers
Asperratessetinschedule
PurchasesinSEZ
h
i S
Actualpaymentnotrequired

CA.ABHAYDESAI

PURCHASES IN SEZ
PURCHASESINSEZ
PurchaseTaxpayableif:
1)GoodsBToutsideState
2)RM&PMforgoodsBToutsideState
3) Fuel in manufacture
3)Fuelinmanufacture
4)Manufactureofexemptedgoods
5)Capitalgoodsingenerationofelectricalenergy
6)Notconnectedwithbusiness
7)Fuelinmotorvehicles
8) Capital goods in works contract
8)Capitalgoodsinworkscontract
9)Transferringrighttouse
10)Anyother
CA.ABHAYDESAI

ACTUAL PAYMENT NOT REQUIRED

ACTUALPAYMENTNOTREQUIRED
Explanation
ExplanationtoRule15(5)
to Rule 15(5) Forthepurposeof
For the purpose of
calculatingthetaxcredit,theamountoftax
under subsection
undersub
section(1),(5)or(6)ofsection9of
(1) (5) or (6) of section 9 of
theActortheamountoftaxundertheGujarat
Tax on Entry of Specified Goods into Local
TaxonEntryofSpecifiedGoodsintoLocal
AreasAct,2001isshownpayablebythe
dealer in his return for a tax period then such
dealerinhisreturnforataxperiod,thensuch
amountoftaxshallbeconsideredtohave
been paid In such tax period
beenpaidInsuchtaxperiod.
CA.ABHAYDESAI

SUMMARY

Who??
Who
When?
What?
h ?
Howmuch?

CA.ABHAYDESAI

THANKS !!
THANKS!!
CA ABHAY DESAI
CA.ABHAYDESAI
M:7874668953
EMAIL: ABHAYDESAI86@GMAIL.COM
EMAIL:
ABHAYDESAI86@GMAIL COM

CA.ABHAYDESAI