Central Goods and Services Tax Act, 2017:

The Central Goods and Services Tax (CGST) Act, 2017, is a comprehensive piece of legislation that governs the levy and collection of Goods and Services Tax (GST) at the central level in India. It was enacted as part of the GST reform, which aimed to replace the complex indirect tax system with a unified GST across the country. The CGST Act, 2017, also includes provisions related to Union Territories.

The Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017, is an extension of the CGST Act to the Union Territory of Jammu and Kashmir. The extension is a result of the abrogation of Article 370 and the reorganization of the state of Jammu and Kashmir into two separate Union Territories—Jammu & Kashmir and Ladakh—effective from October 31, 2019.

Key features of the Central Goods and Services Tax Act, 2017, and its extension to Jammu and Kashmir include:

Central Goods and Services Tax Act, 2017:

1. Levy of GST:

• The CGST Act provides for the levy and collection of GST on the supply of goods and services. It introduces the concept of a dual GST model, where both the central and state governments have the authority to levy and collect GST.

1. Composition Scheme:

• The Act prescribes a composition scheme for small taxpayers, allowing them to pay tax at a lower rate and comply with simplified procedures.

1. Input Tax Credit:

• Input tax credit is a fundamental concept in GST. The Act outlines the conditions under which registered persons can claim credit for the tax paid on inputs.

1. Registration and Returns:

• The Act lays down provisions related to the registration of taxpayers, filing of returns, and other compliance requirements.

1. Anti-Profiteering Measures:

• To ensure that the benefits of GST are passed on to consumers, the Act includes provisions related to anti-profiteering measures.

1. Administration and Adjudication:

• The Act establishes the structure for the administration of GST, including the role of the Goods and Services Tax Network (GSTN). It also provides for the adjudication of disputes.

Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017:

1. Applicability to Union Territory of Jammu and Kashmir:

• This Act extends the provisions of the CGST Act to the Union Territory of Jammu and Kashmir following its reorganization.

1. Constitutional Changes:

• The extension of the CGST Act to Jammu and Kashmir aligns with the constitutional changes and the abrogation of Article 370, which granted special autonomy to the state.

1. Unified GST Regime:

• With the extension of the CGST Act, Jammu and Kashmir became part of the unified GST regime along with the rest of the country.