ICAI Invites Suggestions on Revised Model GST Law

Revised Model GST Law: ICAI Invites Suggestions/ Comments

A. ICAI invites suggestions on revised Model GST Law [dt. 2 Dec. 2016]

ICAI has invited suggestions/ feedback/ comments from the Members or other Stakeholders on the Revised Draft Model GST Law, preferably by 7 Dec. 2016 for onward submission to the GST Council/ CBEC/ GOI for their consideration in due course. The suggestions may be submitted at the following link:


This initiative of ICAI would go a long way in making GST simple, fair, certain and transparent. Already, ICAI is on the job and had earlier also invited feedback/ concerns and suggestions on Model GST Law and had submitted to GOI, which led to many amendments as can be seen from the trailing information vis-a-vis the Revised Draft Model GST Law in present shape.

B. Memorandum containing Suggestions/ Comments Draft/ Model GST Law submitted by ICAI to FinMin for consideration in Final Drafting of GST Law [dt. 17 Aug. 2016]

The ICAI has submitted a memorandum to FinMin containing 84 suggestions/ comments on the Draft/ Model GST Law, for their consideration while framing the final GST Law. The suggestions of ICAI on Model GST law are basically concerning the issues relating to leviability of GST, registration under GST, input tax credit mechanism under GST, transitional issues, etc., to make GST laws simple, fair, transparent and to avoid legacy of litigation.

ICAI Memorandum containing Suggestions on Draft/ Model GST Law

Sl.Index of Contents of ICAI Memorandum of Model GST LawPage No.
1Aggregate Threshold limit for Registration under GST22
2Exclusions from definition of aggregate turnover22
3Definition of Business Vertical23
4Definition of “export of goods”23
5Taxation of Electricity not be included in GST23
6Definition of Inputs& Input Services24
7Correction of definition of “Input Tax Credit”25
8Definition of term “Manufacturer”25
9Meaning of “Substantial Interest” under the definition of
“Related Person”
10Definition of Term “Service”26
11Definition of “Works Contract”26
12Definition of “Inter-state Taxable Supply”27
13Definition of Words ” Captive Plant including mines” and
“Captive use”
14Definition of “Supply”28
15Authority  to  Central/  State  Government  to  notify  a transaction as Supply29
16Taxability of Importation of Services for personal use29
17Movement  of  goods  within  same  business  not  to  be treated as supply30
18Levy and Collection of Central/State Goods and Services
19Definition  of  terms  “Intra-state  Supply”  &  “Inter-state
20Levy & Collection under Reverse Charge32
21Scope & Collection of Taxes under Composition Levy32
22Basic Exemption Limit for Small Suppliers34
23Agriculturist not considered as Taxable Person35
24Exclusion from scope of taxable persons36
25Power to grant exemption from Tax36
26Remission  of  tax  for  deterioration  in  quality  due  to natural causes37
27Taxation   of   Advance   Payments   received   for   goods/
28Deferment of levy till Time of Supply38
29Time  of  Supply  of  Goods  not  to  include  receipt  of payment38
30Reverse Charge on Goods39
31Time of Supply of goods sent or taken on approval or sale or return or similar terms40
32Cessation of services before completion of contract41
33Change in Rate of tax w.r.t Supply of Services41
34Value of Taxable Supply42
35Method of determination of Value42
36Authority of proper officer to reject declared value43
37Eligibility for Availing Input Tax Credit43
38Availment of pre-registration Credit44
39Non-availability  of  Input  Tax  Credit  w.r.t  to  certain supplies44
40Condition for payment and filing of return for availing input tax credit46
41Tax to be paid to the credit of Government for utilizing input tax credit47
42Setting up Procedure for availing Input Tax Credit47
43Input Tax Credit of inputs sent for job work48
44Time Limit for availing CENVAT Credit48
45Recovery  of  excess  input  credit  distributed  by  Input
Service Distributor
46Time limit to fix effective date of Registration50
47Explicit contents of a Tax Invoice50
48Amount of tax to be indicated in tax invoice and other documents51
49Clarification  regarding   furnishing   details   of  outward supplies51
50Rectification  of  Returns  by  Input  Service  Distributors
51Interest on delayed payment of tax52
52Payment of refundable amount to applicant53
53Definition of Books of Accounts for the purpose of GST53
54Removal of goods for job work53
55Definition of “Brand Name” referring only to a service54
56Collection of Tax at Source by e-Commerce operators54
57Return  of  goods  received  in  pursuance  of  an  inward supply55
58Scrutiny of Returns55
59Filing of return to revoke best judgement assessment56
60Audit by Tax authorities of business transactions57
61Time Limit for issuing Notice to be prescribed.57
62Double  tax  payment  for  tax  wrongfully  collected  and deposited58
63Reasons to believe Suppression to undertake a search59
64Summoning   taxable   persons   to   give   evidence   and produce documents59
65Access to business premises to inspect books of accounts, documents etc.59
66All  offences  put   in  one  class  and  penalty  imposed thereupon60
67Imprisonment for 5 years for repeated offences60
68Cognizable and Non-bailable Offences61
69Criteria for determining range of compounding amount61
70Appeals to First Appellate Authority& Appellate Tribunal62
71Calling of records for admitting application for Advance
72Definition of “Manufacturer”63
73Amount of CENVAT credit carried forward in a return to be allowed as input tax credit64
74Transitional Provisions for Taxability on Return of goods from Job workers64
75Downward     revision     of     price     of     goods     after implementation of GST65
76Refund claim filed after the date of applicability of GST66
77Taxability of Supply without Consideration66
78Reversal of Credit for Inputs used for Personal use68
79Nexus of the term “Taxable Threshold”68
80Compulsory  Registration  for  person  making  Inter-state taxable supply69
81Provision of Centralized Registration69
82Mandatory registration for Casual Taxable Person & Non- resident Taxable person70
83Tax Treatment of Stock in Transit under GST70
84Sharing of expenses borne by Shared Service Centres71


  1. P. C. Gupta Mar 3, 2017
    • NDL Mar 5, 2017
  2. Vishal Goyal, Multimode logistics India Pvt Ltd. Apr 19, 2017

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