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Notes on Section 1 of CGST | Central Goods and Services Tax Act, 2017

Detail analysis of the provisions of Section 1 (Short title, extent and commencement) of the Central Goods and Services Tax (CGST) Act, 2017.

Chapter I (Sections 1-2) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to title, extent, commencement and definitions. Section 1 of CGST Act 2017 provides for the title, extend and commencement of CGST Act 2017. You may find all sections of CGST Act 2017 in one place.

Actually, the power to levy Goods and Services Tax (GST) derived from Article 246A of the Constitution. A new Article 246A was introduced by the Constitution (One Hundred and First Amendment) Act, 2016 which empowers Parliament and the Legislature of every State to make laws with respect to goods and services tax imposed by the Union or by such State.

In other words, the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both, Parliament and State Legislatures to make laws with respect to GST i.e. central tax (CGST) and state tax (SGST) or union territory tax (UTGST). However, clause 2 of Article 246A read with Article 269A provides exclusive power to the Parliament to legislate with respect to inter-State trade or commerce i.e. integrated tax (IGST).

Note that Parliament has exclusive power to make laws with respect to Goods and Services Tax (GST) where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.

The Government of India has emphasised that GST is scheduled to roll out on July 1, 2017. The GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, had over the last 3 weeks decided tax rates on over 1,200 goods and 500 services and fitted them in either of 5, 12, 18 or 28 per cent slab.

Did you know? CGST Act 2017 has been enacted by Parliament in the Sixty-Eighth Year of the Republic of India and received the assent of the President on the 12th April, 2017. The CGST Act 2017 has come into force to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.

Section 1: Short title, extent and commencement

Section 1 of the Central Goods and Services Tax (CGST) Act, 2017 provides for short title, extent and commencement of CGST Act 2017. This Act may be called the Central Goods and Services Tax Act, 2017 as provided in Sub-section (1) of section 1 of CGST Act 2017 itself.

The Central Government shall appoint date, by notification in the Official Gazette, on which all sections of CGST Act 2017 shall come into force. And such date is first day of July 2017. However, different dates may be appointed for different provisions of CGST Act and any reference in any such provision to the commencement of CGST Act shall be construed as a reference to the coming into force of that provision. CGST Act 2017 extends to the whole of India.

Following are the main provisions of Section 1 of CGST Act 2017:

(1) This Act may be called the Central Goods and Services Tax Act, 2017.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

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Section 2(56): India
India” means:

  • the territory of India as referred to in article 1 of the Constitution,
  • its territorial waters,
  • seabed and sub-soil underlying such waters,
  • continental shelf,
  • exclusive economic zone or
  • any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and
  • the air space above its territory and territorial waters;

As per Article 1 of the Constitution of INDIA, the territory of India shall comprise—
the territories of the States;
(b) the Union territories specified in the First Schedule; and
(c) such other territories as may be acquired.

The States: 1) Andhra Pradesh; 2) Arunachal Pradesh; 3) Assam; 4) Bihar; 5) Chattisgarh; 6) Goa; 7) Gujarat; 8) Haryana; 9) Himachal Pradesh; 10) Jharkhand; 11) Jammu and Kashmir; 12) Karnataka; 13) Kerala; 14) Maharastra; 15) Madhya Pradesh; 16) Manipur; 17) Meghalaya; 18) Mizoram; 19) Nagaland; 20) Orissa; 21) Punjab; 22) Rajasthan; 23) Sikkim; 24) Tamil Nadu; 25) Telangana; 26) Tripura; 27) Uttar Pradesh; 28) Uttrakhand; 29) West Bengal.

State includes a Union territory with Legislature i.e. Delhi and Pondicherry [Section 2(103)]

Union Territories: 1) Andaman and Nicobar Islands; 2) Chandigarh; 3) Dadra and Nagar Haveli; 4) Daman and Diu; 5) Delhi; 6) Lakshwadeep; and 7) Puducherry

Note that the Central Goods and Services Tax Act, 2017 and all rules, notifications and orders made thereunder by the Central Government has been extended to the State of Jammu and Kashmir vide CGST (Extension to Jammu and Kashmir) Ordinance, 2017 dated 8th July 2017.

If you read section one of any other Act, you will find these three main provisions i.e. the name of the act, scope and the date of its commencement. Similarly, we have noticed that the provisions of CGST Act 2017 also provides for the title or name of the Act (CGST), extent (Whole India) and commencement i.e. first day of July 2017.

Section 1 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017 – Central Tax, G.S.R. 605(E), dated 19.06.2017. Thereafter, Notification No. 9/2017 – Central Tax dated 28th June 2017 was issued to appoint 01/07/2017 as date on which some other sections of CGST Act 2017 shall come into force. However, the appointed day for the State of Jammu and Kashmir was 8th July, 2017.

Please, feel free to ask any query through comment below or on social media if you have regarding provisions of section 1 of CGST Act 2017.

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