Comparison Between Old Model GST law and Revised Model GST Law

1. Copyright © Sachin Bhola 2016
SACHIN BHOLA
Advocate, Company Secretary
Changes in Revised Goods and
Service Tax (GST) Model Law
December 21, 2016
Delhi

2. Copyright © Sachin Bhola 2016
SACHIN BHOLA
Advocate, Company Secretary
Delhi
Capping of
GST Rate
Revised Model GST Law has capped the Central and State GST rates at 14%
each and 28% for IGST.
Aggregate
Turnover
The definition of the term aggregate turnover shall not include non-taxable
turnover, though, exempted turnover still continues to be a part of aggregate
turnover for reckoning threshold exemptions..
Place of
Supply
Separate principles of Place of Supply have been incorporated for import-export
transactions.
Transitional
Provisions
Transitional provisions have been revamped to address the various concerns
raised by the Industry like transitional credit on goods in transit, carry forward of
credit by exempted service providers, first and second stage dealers etc
Anti-
Profiteering
Measure
The Revised Model GST Law has proposed an anti-profiteering mechanism to
ensure benefit of lower taxes in GST is shared with consumers.
It is stated that an Authority will be constituted to examine whether input tax
credits availed by any registered taxable person or
the reduction in the price on account of any reduction in the tax rate have
actually resulted in a commensurate reduction in the price of the said goods
and/or services supplied by him.

3. Copyright © Sachin Bhola 2016
SACHIN BHOLA
Advocate, Company Secretary
Delhi
Subsidies
Subsidies received from Central and State Governments have been excluded
from the transaction value for GST chargeability.
Change in
Tax Rate
When there is change in rate of tax extended for supply of goods as well which
were restricted only to supply of services in Earlier Model GST Law.
Composite
Supply
Supplies naturally bundled It shall be treated as a supply of principal supply
Mixed
Supply
Two or more individual supplies or combination thereof, not constituting composite
supply, It shall be treated as a supply which attracts the highest rate of tax
Supplies to
SEZs
Supply of goods and/or services to a SEZ Developer or an SEZ Unit will now be
treated as ‘zero-rated supplies’ i.e. such supplies will now attract nil rate of tax
under GST.
Time of
Supply
Concept of recipient showing receipt of supply in its books of accounts, has been
deleted from the list of events determining time of supply in GST