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Differences between June 2016 MGL and revised MGL Law, November 2016

Sl. NoTopicAs per Model GST Law in June 2016As per Model GST Law in Nov 2016
1Definition of SupplySecurities were included in the definition of supplythe word securities is dropped from the definition
2Definition of aggregate turnoverNon Taxable supplies are included in the definition of aggregate turnoverNontaxable supplies have been dropped from the definition
3Capital GoodsDefinition of capital goods was same as that of the existing definition in Cenvat Credit Rules 2004Now it is based on the capitalization in the books of accounts and not related to the tariff codes
4Taxability Composite SupplyNot there in this lawthe principal supply will be considered for taxation liability
5New concept - Mixed SupplyNot there in this lawThe tax rate of the highest supply will be considered for determining tax liability
6Tax Rates under Composition LevyMentioned as one percent Two and half percent in case of manufacture and one percent in other cases
7Applicability of Composition Levy Schemewas applicable for both supply of goods and servicesNow services have been specifically excluded
8Taxable PersonTurnover upto Rs 10 Lacs in case of all other states and Rs 5 Lacs in case of North Eastern States including SikkimTurnover has been increased to Rs 20 Lacs and Rs 10 Lacs for states with special category status
9Time of Supply - GoodsTime of supply for goods was earliest of the following a) Date on which goods have been removed by the supplier for supplying to recipient
b) Date on which goods were made available to the recipient
c) Date on which supplier issues invoice
d) Date on which supplier receives payment with respect to supply or
e) Date on which the recipient shows goods in his books of account
Time of supply for goods was earliest of the following a) Date of issue of invoice
b) Date of receipt of payment
10Time of Supply for Goods - Reverse ChargeTime of supply for goods was earliest of the following a) Date of Receipt of Goods
b) Date on which payment is made
c) Date of receipt of invoice
d) Date of debit in the books of account
Time of supply for goods was earliest of the following a) Date of Receipt of goods
b) Date on which payment is made c) within 30 days from the receipt of goods
11Time of Supply - ServicesEarliest of the following dates (a) the date of issue of invoice or the date of receipt of payment, whichever is earlier, if
the invoice is issued within the prescribed period; or
(b) the date of completion of the provision of service or the date of receipt of payment,
whichever is earlier, if the invoice is not issued within the prescribed period; or
(c) the date on which the recipient shows the receipt of services in his books of account,
in a case where the provisions of clause (a) or (b) do not apply.
Time of supply for services will be earliest of the following dates a) Date of issue of invoice b) Date of receipt of payment
12Time of Supply for Services under Reverse ChargeTime of supply for Services under Reverse Charge, earliest of the following dates (a) the date of receipt of services,
(b) the date on which the payment is made,
(c) the date of receipt of invoice,
(d) the date of debit in the books of accounts.
services, is the earliest of the following dates (a) the date on which the payment is made, or
(b) the date immediately following sixty days from the date of issue of invoice by
the supplier:
13Time of Supply - VouchersTime of Supply for Vouchers will be earliest of the following dates a) Date of issue of voucher b) Date of Redemption of voucher
14Job work time limit The time limit for return of goods send under Job work is 180 days in case of Inputs and 2 years in case of Capital GoodsThe time limit for return of goods under Job Work is 1 year in case of Inputs and 3 years in case of Capital Goods
15RefundTime limit is defined as 3 months and if delayed beyond 3 months interest will be paidTime limit is defined as 60 Days and if delayed beyond 60 days interest will be paid
16Tax Invoice for Reverse chargeNothing is mentioned in Model GST Law with respect to issue of tax invoice for payment of reverse chargeTax invoice has to be issued for payment for taxes under reverse charge
17Input Tax Credit - Capital GoodsNothing is mentioned in Model GST Law with respect to the treatment of Input Tax Credit of Capital Goods One third is eligible to be taken as Input Tax Credit in case of Pipelines and Telecommunication Towers fixed to earth
18Input Tax Credit - Provisional BasisTime period given for matching was two monthsNow the same has been extended to three months for matching
19Time limit for issue of RefundWithin three months, refund has to be issued else interest is payable if not issued within 3 monthsWithin three months, refund has to be issued else interest is payable if not issued within 60 days
20Value of SupplyInterest, late fee or penalty for delayed payment were not part of the taxable value for supplyGST is to be levied on interest, late fee or penalty for delayed payment
21Anti-Profiteering clauseNot mentioned New clause is added to ensure that the profit realized on account of tax reduction is passed on to the end consumer.
22 Input Tax Credit – Banking  No specific provisions  Have a provision to taken 50% of the Input Tax Credit available in the month or take 100% basis on Input Tax Credit for taxable and rated supplies.
23 Job Work – Process Prior approval of the Commissioner required for the sending of goods to job worker required  Prior approval is not required, only intimation is required for sending the goods to the job worker
24 Transitional Provision – inputs in transit  No such provision is mentioned in the MGL For inputs or input services which are in transit and received after the rollout of GST, 30 days’ window period is given for availing the input tax credit.
25 Transitional Provisions – closing balance  Cenvat Credit was eligible to be carried forward only if the same was eligible for credit in the earlier law and the GST Law The word “earlier law” has been dropped
6 Comments - Leave a Comment
  • Sudhamadhav -

    Hello Sir,

    It’s been great effort by you in consolidating the GST related data and posting it here. I have been following your posts in GST discussion group in google groups also. It would be great if you can share entire GST returns structure from an ERP point of view. It would be very easy and added advantage for freshers like me who just entered the ERP market. I was able to follow regular flow from the threads, but I have a confusion on how amendments to an invoice works.
    Please share your valuable inputs and suggestions to move forward.

    Thanks,
    Sudhamadhav

  • Leave a comment