Comparison of Old and New Draft of Model GST Law

New Draft Model GST Law is published on 25/11/2016 in the public domain. It has undergone too many changes as compared to earlier Draft Model GST Law published in June 2016. In many places, basic definitions also have undergone changes.

Though there is complete change if seen word by word in the whole 2 draft laws, following is the comparative study of major changes in the New Draft Model GST Law (i.e. Nov 2016) w.r.t. Old Draft Model GST Law (i.e. June 2016).

Key Point Old Draft Model GST Law (June 2016) New Draft Model GST Law (Nov 2016)
Number of Sections It consists of Section 1-162E It consists of Section 1-197
Draft Prepared by Empowered Committee of State Finance Ministers GST Council Secretariat
Meaning of Taxable Person

Section 9 :

Taxable Person means a person who carries on any business at any place in India /State of ____ and who is registered or required to be registered under Schedule III of this Act:

Provided that an agriculturist shall not be considered as a taxable person.

“Section 10: –

(1) Taxable Person means a person who is registered or

liable to be registered under Schedule V of this Act.

(2) A person who has obtained or is required to obtain more than one registration, whether in one State or more than one State, shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

(3) An establishment of a person who has obtained or is required to obtain registration in a State, and any of his

other establishments in another State shall be treated as establishments of distinct persons for the purposes of

this Act.

Limit for GST registration

 

Nine Lakh Rupees

[Schedule III ]

Twenty Lakh Rupees

[Schedule V]

AggregateTurnover Meaning Non taxable supplies included [section 2(6)] Non taxable supplies excluded [section 2(6)]
Levy Rate of CGST/SGST was not capped Rate of CGST/SGST capped to 14% [Sec 8]
Agent

Agent means a person who carries on the business of supply

or receipt of goods and/or services on behalf of another,

whether disclosed or not and includes a factor, broker,

commission agent, arhatia, del credere agent, intermediary or

an auctioneer or any other mercantile agent, by whatever

name called, and whether of the same description as

hereinbefore mentioned or not;

[Section 2(5) ]

Agent means a person including a factor, broker, commission agent, arhatia, del credere agent, an

auctioneer or any other mercantile agent, by whatever name called, who carries on the business of

supply or receipt of goods or services on behalf of

another, whether disclosed or not;

[Section 2(5) ]

Business New part added into the old definition

New Addition

(h) services provided by a race club by way of totalisator or a licence to book maker in such club;

Explanation. Any activity or transaction undertaken by the Central Government, a State  Government or any local authority in which they are engaged as public

Capital assets Was defined No such definition
Capital Goods Definition was borrowed from excise law

New Definition:

Capital Goods means goods, the value of which is capitalised in the books of accounts of the person

claiming the credit and which are used or intended to be used in the course or furtherance of business; [Section 2 (19)]

Common working days No Such Definition

common working days in respect of a “State shall mean

such days in succession which are not declared as a gazetted holiday by the Central Government or the concerned State Government

[ section 2 (24) ]

Composite supply

Composite supply means a supply consisting of –

(a) two or more goods;

(b) two or more services; or

(c) a combination of goods and services

provided in the course or furtherance of business, whether or

not the same can be segregated;

[Section 2(27) ]

Composite supply means a supply made by a taxable

person to a recipient comprising two or more supplies of

goods or services, or any combination thereof, which are

naturally bundled and supplied in conjunction with each

other in the ordinary course of business, one of which is

a principal supply;

Illustration : Where goods are packed and transported

with insurance, the supply of goods, packing materials,

transport and insurance is a composite supply and supply

of goods is the principal supply.

[Section 2(27) ]

Consideration Subsidy received from Government not excluded Subsidy received from Government excluded
Electronic cash ledger

electronic cash ledger means the cash ledger in electronic

form maintained at the common portal for each registered

taxable person in the manner as may be prescribed in this

behalf;

[Section 2(40) ]

electronic cash ledger means the electronic cash ledger referred to in subsection (1) of section 44;

[Section 2(40) ]

 

 

 

Electronic credit ledger

electronic credit ledger means the input tax credit ledger in

electronic form maintained at the common portal for each

registered taxable person in the manner as may be prescribed

in this behalf;

[Section 2(41) ]

electronic credit ledger means the electronic credit

ledger referred to in subsection (2) of section 44;

[Section 2(43) ]

Electronic commerce No Such Definition

electronic commerce means supply of goods and/or

services including digital products over digital or electronic network; [Section 2(41) ]

Electronic commerce operator No Such Definition

electronic commerce  means supply of goods and/or

services including digital products over digital or electronic network; [Section 2(41) ]

First stage dealer No Such Definition

first stage dealer means a dealer, who purchases the

goods directly from,

(i) the manufacturer under the cover of an invoice issued

in terms of the provisions of Central Excise Rules, 2002 or

from the depot of the said manufacturer, or from

premises of the consignment agent of the said

manufacturer or from where the goods are sold by or on

behalf of the said manufacturer, under cover of an

invoice; or

(ii) an importer or from the depot of an importer or from

the premises of the consignment agent of the importer,

under cover of an invoice;

[Section 2(46) ]

Goods

excludes actionable claims

Includes securities

includes actionable claims

excludes Securities

Input

input means any goods other than capital goods, subject to

exceptions as may be provided under this Act or the rules

made thereunder, used or intended to be used by a supplier

for making an outward supply in the course or furtherance of

business; [Section 2(54)]

input means any goods other than capital goods used

or intended to be used by a supplier in the course or

furtherance of business; [Section 2(52)]

Input service

as above:

restriction was to be used for making outward supply

No such restriction
Intangible property Was defined No such definition
IntraState supply of goods No Such Definition

intraState supply of goods means the supply of goods

in the course of intraState trade or commerce in terms

of subsection (1) of section 4 of IGST Act, 2016; [Section

2(57)]

Mixed supply No Such Definition

mixed supply means two or more individual supplies

of goods or services, or any combination thereof, made

in conjunction with each other by a taxable person for a

single price where such supply does not constitute a

composite supply;

Illustration: A supply of a package consisting of canned

foods, sweets, chocolates, cakes, dry fruits, aerated drink

and fruit juices when supplied for a single price is a

mixed supply. Each of these items can be supplied

separately and is not dependent on any other. It shall not

be a mixed supply if these items are supplied separately.

[ Section 2(66) ]

Motor vehicle No Such Definition

motor vehicle has the meaning assigned to it is clause

(28) of section 2 of the Motor Vehicles Act, 1988 (59 of

1988); [ Section 2(67) ]

outward supply

outward supply in relation to a person, shall mean supply of

goods and/or services, whether by sale, transfer, barter,

exchange, licence, rental, lease or disposal made or agreed to

be made by such person in the course or furtherance of

business except in case of such supplies where the tax is

payable on reverse charge basis;

[ Section 2(73) ]

outward supply in relation to a person, shall mean

supply of goods or services, whether by sale, transfer,

barter, exchange, licence, rental, lease or disposal or any

other means made or agreed to be made by such person

in the course or furtherance of business;

[ Section 2(72) ]

Principal place of business

principal place of business means the place of business

specified as the principal place of business in the certificate of

registration where the taxable person keeps and maintains

the accounts and records as specified under section 42 ; [

Section 2(78)]

Principal place of business???? means the place of business

specified as the principal place of business in the

certificate of registration ;

[ Section 2(77)]

Principal supply No Such Definition

principal supply means the supply of goods or services

which constitutes the predominant element of a

composite supply and to which any other supply forming

part of that composite supply is ancillary and does not

constitute, for the recipient an aim in itself, but a means

for better enjoyment of the principal supply; [ Section

2(78)]

Quarter No Such Definition

quarter shall mean a period comprising three

consecutive calendar months, ending on the last day of

March, June, September and December of a calendar

year; ; [ Section 2(80)]

Registered importer No Such Definition

registered importer means the importer registered in

terms of the provisions of Central Excise Rules, 2002;

; [ Section 2(82)]

Securities No Such Definition

securities shall have meaning assigned to it in sub

section (h) of section 2 of the Securities Contracts

(Regulation) Act, 1956 (42 of 1956);

[ Section 2(90)]

second stage dealer No Such Definition

second stage dealer means a dealer who purchases

the goods from a first stage dealer as defined in subsection

(46); [ Section 2(91)]

Year Was defined No Such Definition

CA Piyush Chandak
CA Piyush Chandak, qualified as B. Com., LL.B., FCA, DISA, Certificate Course in IDT (ICAI) a Chartered Accountant in practice with more than one decade of experience in the field of Sales Tax, Service Tax, Business Management Services, Financial Planning, Project Reporting, Appearing before Income Tax, Sales Tax and Service Tax Authorities. He was a visiting faculty in NBT Law College, Nashik of Gokhale Education Society. He Can be reached at: - P. P. Chandak & Co., Chartered Accountants, 8, Sulochana, Opp. Patil Plaza, Near Advait Colony, Canada Corner, Nashik – 422 005; 0253-2317755, 9766227755, ppchandakandco@gmail.com; capiyushchandak.gst@gmail.com

Leave a Comment