HISTORY OF G.S.T.-Taxable event in G.S.T.

Taxable event in G.S.T.-Indian legislation passed tax law is applicable for event; GST tax was arisen by PM Mr. Narendra modi’s government of NDA alliance in India. Under the erstwhile indirect tax regime, there was no concept of Supply of goods or service. The stage at which indirect taxes were levied varied under different tax laws. The ‘excise duty’ was charged on goods manufactured when they were taken out of the factory. ‘Service Tax’ was levied based on certain rules known as the ‘point of taxation’ rules, for services rendered. A VAT would arise on the value of the sale of goods or provision of services. The present system has merged all taxes to maintain a single taxable event. As was passed time more and more services included in G.S.T. format. At present, there are about numbers of taxable services collect heavy earnings in the our country.

1. WHAT IS FULLY TAXABLE EVENT?

Taxable event under GST law Is “Time of supply of goods and service or both” the summary is included 

Section 7 of the CGST Act was amended to include a new clause under the definition of supply. Activities or transactions involving the supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Earlier, this supply would have been considered as only supply of goods under schedule II. So, the scope is expanded now for levy.

2.ARE EVENT SALES TAXABLE?

As per definition given in law that event Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST. The said Supply of goods or services has important elements:

• Supply of goods or services  is done for a consideration
• Supply of goods or services is done in course of furtherance of business
• Supply of goods or service (supply of anything other than goods or service does not attract G.S.T.)
• Supply should be made by a taxable person
• Supply should be a taxable supply
• Supply should be made within the taxable territory If the aforementioned elements are not met with, it is not considered as a sale.

3. WHICH IS THE TAX APPLICABLE FOR HOLDING AN EVENT?

The Tax applicable for holding an event activities considered as a supply of goods as per Schedule II of the GST Act as a Transfer of business assets – Transfer of title of goods

1. Business assets transferred/disposed of with or without consideration.

2. If the owner ceases to be a taxable person then his business assets will    be assumed to be supplied to him in course of his business– This is not applicable in the following under mentioned transactions:

     A. Business is transferred to another person.

     B. Business is carried by a taxable representative

Activities considered as a supply of services as per Schedule II of the GST Act – Transfer of right in goods without transfer of title

1. Land and building, Lease, rent, tenancy, easement, license to occupy land
   1. Lease or letting out of the building (Building includes commercial/ industrial/residential complex for business use either wholly or partly)
   1. Transfer of business assets: The owner uses or allows to use business assets for personal use.
   1. Renting of immovable property (Rented residence is exempted from GST)
   1. Development of information technology software Agreeing to refrain from an act – Non-competition agreements Transfer of right to use any goods for a consideration
   1. Any treatment or process which is applied to another person’s goods is a supply of services.
2. Composite supply and Mixed Supply:
3. There are a few supplies which are made together with two or more items. Such supplies are further classified into composite supply and mixed supply. 
4. A supply comprising of two or more goods/services, which are necessarily supplied in conjunction with each other as per frequent business practices followed in that area. In other words, these items cannot be supplied individually. There is a principal supply and a secondary supply in the whole transaction. In such cases, the tax rate on principal supply will apply to the entire supply.
5. A supply comprising of two or more goods/services, wherein the supplies are independent of each other and are not necessarily required to be sold together is called a mixed supply. The first condition to be met for mixed supply is that ‘it should not be a composite supply’. In such cases, the tax rate that is higher of the two supplies will be applicable to the entire supply.
6. Import of services:
7. Import of goods/services with consideration is considered as supply whether for personal or business use.

4. TAXABLE EVENT 401.K

Country wise provision of the G.S.T. law 401.k is an organisation saving plan that lets employee invest some of their funds before pay tax. Employers often will match some portion of 401k accept in India we have the E.P.F., E.S.I. and P.P.F. etc government scheme. where the amount invested is tax free government scheme (as per limit mentioned under tax law) in the said column I will be discussing one of the aspect which we as professional are likely to come across in case of individuals returning from the US on the front of their personal retirement finance.

• Retirement Plans (401K plan and Individual retirement Account (IRA) Plan 

401K plan is subscribed to when the individuals is in employment, the employer pay equal contributions benefit of employee

An individual retirement account plan subscription is pay when the taxpayer is generating self-employment income. In case of a tax payer who is a member of a 401K plan, when his/her employment service are discontinue, the 401k plan can be rolled over into IRA plan.

5. TAXABLE EVENT MEANING IN HINDI

जीएसटी कानून के तहत कर योग्य घटना "माल और सेवा या दोनों की आपूर्ति का समय" सारांश शामिल है

आपूर्ति की परिभाषा के तहत एक नया खंड शामिल करने के लिए सीजीएसटी अधिनियम की धारा 7 में संशोधन किया गया था। नकद, आस्थगित भुगतान या अन्य मूल्यवान प्रतिफल के लिए अपने सदस्यों या घटकों को या इसके विपरीत, किसी व्यक्ति के अलावा किसी अन्य व्यक्ति द्वारा वस्तुओं या सेवाओं की आपूर्ति से संबंधित गतिविधियाँ या लेन-देन। पहले इस आपूर्ति को अनुसूची II के तहत केवल माल की आपूर्ति के रूप में माना जाता था। इसलिए, अब लेवी के दायरे का विस्तार किया गया है। वस्तुओं या सेवाओं की उक्त आपूर्ति में महत्वपूर्ण तत्व हैं:

1. वस्तुओं या सेवाओं की आपूर्ति एक विचार के लिए की जाती है

2. वस्तुओं या सेवाओं की आपूर्ति व्यवसाय को आगे बढ़ाने के क्रम में की जाती है

3. माल या सेवा की आपूर्ति (वस्तु या सेवा के अलावा किसी भी चीज़ की आपूर्ति पर जीएसटी नहीं लगता है)

4. आपूर्ति कर योग्य व्यक्ति द्वारा की जानी चाहिए

5. आपूर्ति एक कर योग्य आपूर्ति होनी चाहिए

6. आपूर्ति कर योग्य क्षेत्र के भीतर की जानी चाहिए

(उपयोगकर्ताओं से अनुरोध है कि यहां अनुवादित जानकारी का उपयोग करने से पहले सत्यापित करने की आवश्यकता है)

6. TAXABLE EVENT UNDER G.S.T. WITH EXAMPLE

 Buying a Dry Fruit Gift Box for Diwali. It includes dry fruits, a box, and a wrapper. Box and wrapper cannot be sold individually without the main content which is dry fruit. This is a composite supply. 

Buying a Festival package consisting of cakes, aerated drinks, chocolates, caps, and other gift items. Each of these items can be sold separately and are not dependent on each other. This is a mixed supply.  

7. TAX EXEMPTION IN EVENT?

As per u/s. 11 and 6 of the IGST are various types of supplies which are not liable to tax under taxable event:-

1. Non-Taxable supply or service (u/s-2(78) of the CGST
   1. Nil rated supply or service (Notification no. 11/2017 dated 28/06/2017of the IGST
   1. Zero rated supply or service (u/s-16(1) of the IGST

1. Exemption to Small Scale Service Providers:

1.  In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act:
2.  Provided that nothing contained in this notification shall apply to,-

(i) Taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or

(ii) Such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994.

2. The exemption contained in this notification shall apply subject to the following

1. conditions, namely:-

(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

(iii) the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received in the premises of provider of such taxable service during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;

(v) the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

(vi) the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;

(vii) where a taxable service provider provides one or more taxable  services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and

(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed rupees *ten lakhs in the preceding financial year.

3. For the purposes of determining aggregate value not exceeding ten*lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67 for which the person liable for paying service tax is as specified under subsection (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall not be taken into account.

      Explanation.- For the purposes of this notification,-

 (A) "brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

(B) "aggregate value not exceeding *ten lakh rupees means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under section 67 of the said Finance Act, charged by the service provider towards taxable services till the aggregate amount of such payments is equal to ten lakh rupees but does not include payments received towards such gross amount which are exempt from whole of service tax livable thereon under section 66 of the said Finance Act under any other notification.

4. This notification shall come into force on the 1st day of April, 2005. [Notification No. 6/2005-ST, dated 1-3-2005. *Amended by Notfn.No. 8/2008-ST dated 01.03.2008]

3. Services to UN Agencies

• Services provided to United Nations or an International Organizations are exempt. [Notification No. 16/2002-ST, dated 2-8-2002]

4. Export of service

Any service which is taxable under clause 105 of Section 65 may be exported without payment of service tax. (Rule 4 of Export of Services Rules, 2005)

5. Exemption to services provided to a developer of SEZ or a unit of SEZ:

Exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorized operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone, from the whole of the service tax leviable thereon under section 66 of the said Finance Act subject to certain conditions. (Refer notification for details) {Notification No. 09/2009ST dated 03.03.2009 (Prior to 03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)}

6. Exemption to value of goods & material sold by service provider:

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of service, from the service tax leviable thereon under section (66) of the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials.(Notification No. 12/2003-ST dated 20.06.2003 effective from 01.07.2003)

7. Exemption to taxable services provided by TBI and STEP:

All taxable services, provided by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Govt. of India from the whole of the service tax livable thereon subject to certain conditions and procedures. (notification for details) (Notification No.09/2007 ST dated 01.03.2007)

8. Exemption to taxable services provided by entrepreneurs located within the premises of TBI or STEP:

All taxable services, provided by an entrepreneur located within the premises of a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Govt. of India from the whole of the service tax leviable thereon subject to certain conditions and procedures. (Refer notification for details) (Notification No.10/2007 ST dated 01.03.2007)

9. Exemption to services provided to Foreign Diplomatic Missions or Consular Post in India:

All services provided by any person, for the official uses of a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures. (notification for details) (Notification No. 33/2007-ST dated 23.05.2007)

10. Exemption to services provided for personal use of a family member of Diplomatic Agent or Career Consular Officers posted in Foreign Diplomatic Mission/Consular Post in India:

All services provided by any person, for personal use of family member of Diplomatic Agents or Career Consular officers posted in a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures. (notification for details)(Notification No. 34/2007-ST dated 23.05.2007)

As per mentioned activities or transactions treated neither as the sale of goods nor sale of services as per Schedule III of GST Act, Following are the transactions covered under Negative list:

• Services provided by an employee to the employer
• Gifts up to Rs.50,000/- in value in a Financial Year, by an employer to an employee
• Services of the funeral, burial, crematorium or mortuary including transportation of the deceased
• Services by any court or Tribunal
• Duties performed by the MP/MLA/MLC/ Members of Local Bodies
• Duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority
• Duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity
• Sale of Land
• Sale of Building (However, If construction of a complex /building intended for sale to a buyer and part of the consideration is received before completion, then it will be treated as Supply of Services)

Actionable claims, other than lottery, betting and gambling

8. CONCLUSION

It is in the interest of the people and the government to calculate the supply or service or both event and pay the tax properly as per the information given above.https://askbylaw.com/wp-admin/post.php?post=589&action=edit