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The Central Goods and Services Tax Act, 2017

Every country has its own tax laws and policies that differ from one another. In India several categories of tax laws exist for different purposes. There are central, State and Union Territory tax laws are implemented on Goods and services supplies in India. In order to complete the purpose of tax levied on intra supply of goods and services between states and between union territories and State under the entire legislative power of Central Government, The Central Goods and services Act 2017 was enacted in 12th April 2017. The CGST Act is vast and comprehensive with 21 chapters, 174 sections and 3 schedules.

Chapter one itself has 121 clauses providing detailed explanation from goods, competent authority and to the reference of this corresponding law even in the State of Jammu and Kashmir.

The act specifically states the administrative officers and their authorization to levy the tax and also the exemption of tax in accordance with the provisions of the Act. Section 14 confers the change of rate of tax particularly on the date of payment receipt and section 15 states the value of taxable supply is entirely based on transaction value. The registered person on supply of taxable goods is also eligible for input tax credit subject to terms and conditions. Section 20 deals with the procedure of distribution of credit by input service distributor. The cancellation of registration on the death of a registered person is also stated in section 29. Section 32 specifically states the prohibition of unauthorized collection of taxes inconsistent with the provisions of the act.

Chapter nine of the acts enumerates the furnishing of returns on goods on outward supplies that includes invoices, debit notes, credit notes pertaining to the outward supply during any tax period. Collection and deduction of tax at the source is also elaborately stated in section 51 and 52.

Any authorized officer not below the rank of Joint commissioner is conferred with the power to search, seizure and arrest of any taxable person who concealed any transaction details by virtue of chapter 14 of the act and chapter 15 section 74 deals with the determination of tax based on general provisions. Liabilities of partners of a firm is provided in chapter 16.

Chapter 17 deals with the functions and powers of appellate authority in advance ruling and the orders of the appellate authority and chapter 18 deals with the appeals and revisions to be considered by the Appellate authority. Section 117 and section 118 deals with the appeals to High Court and Supreme Court respectively on an aggrieved order from the Appellate Tribunal. Chapter 19 deals with offences and penalties and chapter 21 provides repeal and savings.

It is an undoubted fact that the Act enumerates even minute details with regard to the tax applicable levied on goods and services by the Central Government between the states including the three schedules that specifies any supply without consideration, any activities relating to goods o and supplies and any transaction that can’t be categorized as supply of any goods and services.

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