The Model GST was released in June 2016 to the public for their review and also make the industry plan for the rollout of GST. Basis the MGL published in June, the trade and industry and professionals have taken a very critical view of the same and submitted the feedback to the Government. Basis of the feedback, the suggestions have been incorporated in the Model GST Law and released to the public in November 2016 as Revised MGL.
This article gives a glimpse of the changes announced in the June MGL and Revised MGL published in November 2016.
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Collection of Tax at Source or TCS_GST is applicable based on section 56 of the Revised Model GST Law and the tax rate is one percent of the net value of the taxable supplies made for consideration.
The threshold limit for applicability of deduction of tax at source is reduced from Rs 10 Lacs to Rs 5 Lacs in the Revised Model GST Law released in November 2016.
In the revised MGL a new concept called Mixed Supply is introduced. Mixed supply means a supply of more than one good bundled together and supplied. For example combo pack of Soap, detergent, hand wash, toilet cleaner, floor cleaner and room freshener. This combo pack is a mixed supply.
In the Revised Model GST Law, a new provision has been added wherein the tax payer can take input tax credit within 30 days of the appointed date for the goods received after appointed date but shipped before appointed date.
In the revised Model GST Law, for the Inspection of goods in movement, the limit of Rs 50,000 has been dropped from the act and the same will now be announced in the notifications from time to time for the prescribed documents to be carried out during the movement of goods.
Time of supply for the goods under the revised Model GST Law, is data of issue of invoice or last date to be issued under the provisions or date of receipt of payment whichever is earlier.