How is 'Services' defined in GST?

How is 'Services' defined in GST?

Services is defined in GST as anything other than goods.

Money and securities have specifically been excluded from the definition of services. However specified transactions in money have been included – activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination to another form, currency or denomination for which a separate consideration is charged.
Thus the meaning of service is much enlarged from the existing meaning in service tax law. There was  a view that real estate can now be termed as service as it is not “goods”. However,in the final CGST Act sale of land and buildings has been listed as one of the transactions that will be treated as neither a supply of goods or of service under Schedule III of the CGST Act.

What is the meaning of supply under GST?

What is the meaning of supply under GST?

Supply is defined to include all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes importation of services for a consideration whether or not in the course or furtherance of business.

Normally a supply will involve two independent persons. However, GST makes transactions between two branches of the same legal entity in different States/ countries or two different registrations within the same State also taxable under GST.

Transactions of supply of goods between principals and agents which are not subject to tax in present regime are taxable supplies under GST as these have been treated as supplies under Schedule I of the CGST Act.

The definition of supply is inclusive and thus of the widest possible connotation.

What is the charging event for levy of GST?

What is the charging event for levy of GST?

The charging event of levy is the event which determines whether an activity attracts the charge. However tax may be collected before or after the event for the sake of administrative certainty or convenience.
GST is leviable on-

•   Supply of

•   Goods /or services

•   By a taxable person

•   At value determined and at such rate as may be notified by Central/State    Government on recommendation of the GST Council

•   And collected in the manner as prescribed.

What are the unique features of Indian GST?

What are the unique features of Indian GST?

GST will be a dual levy in India and the eligible transactions will be subject to levy of both Central Tax and State Tax. There shall be Integrated Tax by Centre in the case of inter-State supplies and imports/ exports. Certain goods and services will be subject to a further levy of GST Compensation Cess. Supplies to or from Union Territories will also be treated as inter-State supplies. Supplies within a Union Territory without legislature will be charged to UT Tax. Certain products are out of the ambit of GST e.g. petroleum products, tobacco and tobacco products etc.

There will be a single common market with goods and services moving seamlessly in the entire country. Tax credits would be available even on inter-State supplies

Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States)
 Compounding threshold limit to be Rs. 50 lac with -

 Government may convert existing Area based exemption schemes into reimbursement based scheme

 Four tax rates namely 5%, 12%, 18% and 28%

 Some goods and services would be exempt

 Separate tax rate for precious metals 

Which of the existing taxes are not subsumed under GST?

Which of the existing taxes are not subsumed under GST?

The GST will not replace the following taxes:

• Taxes currently levied and collected by the Centre: Taxes on income, wealth or gifts (never included in a GST kind of tax); Basic Customs Duty (never included in GST, being tariff barrier); Duty of Excise on tobacco and tobacco products (normally levied over and above GST); Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freights; Central Stamp Duties; Oil Industries Development Act Cess (OIDB Cess) (as petroleum is kept outside GST); Clean Environment Cess. [GST (Compensation to States) Act, 2017 has proposed levy of cess on all goods which are presently subject to Clean Environment Cess at the rate on which such cess is levied presently. This indicates Government’s decision to abolish levy of cess in current form but recover it in a different form The cess levied under GST (Compensation to States) Act will be eligible for input tax credit for payment of cess levied under the same Act as against present levy which is not eligible for input tax credit.]  
• State taxes that would not be subsumed under the GST are: Fees in respect of markets and fairs (Mandi fees); Taxes on lands and buildings (property tax); State Stamp Duties; Taxes on mineral rights; Electricity Duty; Taxes on goods and passengers carried by road or on inland waterways; Taxes on vehicles (Road Transport Authority); Tolls; Taxes on professions, trades, callings and employments; Entertainment tax by local bodies