Model GST Law
GOODS AND SERVICES TAX ACT, 2016
What is Person under GST ?
Section 2(50) “person” includes—
(a) an individual;
(b) a Hindu undivided family;
(c) a company;
(d) a firm;
(e) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
(f) any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 2(45) of the Companies Act, 2013 (18 of 2013);
(g) any body corporate incorporated by or under the laws of a country outside India;
(h) a co-operative society registered under any law relating to cooperative societies;
(i) a local authority;
What is Taxable person under GST ?
As per Section 9:-
(1) 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 for payment of tax.
(2) The Central or a State Government may, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
(3) The Central Government, a State Government or any local authority shall be regarded as a taxable person in respect of activities or transactions in which they are engaged as public authorities other than the activities or transactions which may be exempted, by notification, by the Central or a State Government, on the recommendation of the Council.
(4) Any person who provides services as an employee to his employer in the course of, or in relation to his employment, or by any other legal ties creating the relationship of employer and employee as regards working conditions, remunerations and employer’s liability, shall not be considered as a taxable person.
Q : what is the Liability to be registered under Schedule III of GST?
1. Every person who, on the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the said day.
2. Every person to whom the provisions of paragraph 1 above do not apply,shall be liable to be registered under this Act if his turnoverin a financial year exceeds the [taxable threshold].
Explanation 1: For the purposes of this Schedule, the taxable threshold shall be such amount as may be specified in the notification issued in this behalf by the Central or a State Government on the recommendations of the Council.
Explanation 2: The taxable threshold shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.
3. Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee, or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
4. Notwithstanding anything contained in paragraph 1 and 2 above, in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, the transferee shall be liable to be registered, where required, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court.
5. Notwithstanding anything contained in paragraph 1 and 2 above, the following categories of persons shall be required to be registered under this Act:
(i) persons making any inter-State supply, irrespective of the taxable threshold specified under paragraph 2;
(ii) casual taxable persons; and
(iii) persons who are required to pay tax under reverse charge.
Q What is Casual Taxable persons ?
As per Section 2(16)
“casual taxable person” means a person who occasionally undertakes transactions involving supply or acquisition of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business;
Q What is Reverse Charge under GST ?
As per Section 2(57)
“reverse charge’’ means the liability to pay tax by the person receiving services instead of the person supplying the services in respect of such categories of supplies as the Central or a State Government may, on the recommendation of the Council, by notification, specify;
Source : REPORT OF SUB-COMMITTEE-II ON MODEL GST LAW