New GST Model law November 2016

New GST Model Law is here. It as expected from some days and there were some posts in media from undisclosed sources. But today the amended Law has been placed on the website of CBEC itself. 

You can download it here. New GST model law has amended many definitions and sections. Threshold limit for registration and taxability has been kept at Rs. 20 lac. There will be no difference in threshold for registration and taxability under New GST model law.

Definition of “aggregate turnover ” has been changes it will not include the non taxable supplies anymore. The new definition will be under section 2(6) 

“aggregate turnover means the aggregate value of all taxable supplies, exempt supplies, export of Goods and/or services and inter state supplies of a person having the same PAN, to be computed on all India basis and exclude taxes, If any charged under CGST Act, SGST Act and the IGST Act , as the case may be.” 

Provisions for registration are shifted from section 19 to section 23 to section 27 in the new GST Model Law. Schedule III has been replaced with schedule V. 

Section 7 of earlier law providing for the levy has been replaced by section 8. A cap of 14% has been place for GST on intrastate transactions making it limited to 28% in levy itself.Also in case of an E-commerce operator not having presence in taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax.

Further if an electronic commerce operator does not have a physical presence in the taxable territory and also don’t have any representative in taxable territory . Then he will have to appoint a person in taxable territory for the purpose of paying tax and such person shall be liable to pay tax.

Compounding levy will now be covered by section 9 of the new GST Model Law.