TDS under GST: designated government entities must withhold and deposit tax at source on taxable in state supplies exceeding the threshold.
Section 51 creates an obligation for specified government and government-controlled entities to deduct CGST and SGST at source on taxable supplies where a single contract exceeds the notified threshold, provided the supplier is registered and the place of supply is within the concerned State/UT. Deductors must register for TDS, deduct on the taxable value excluding GST, deposit amounts within ten days after month-end, file GSTR-7 before return submission is accepted, furnish an electronic certificate to the deductee within five days of deposit, and face interest and late fees for non compliance. (AI Summary)

GST compliance framework ensures sequential assessment of supply, classification, place/time rules and input tax credit entitlement.
GST compliance is a sequential framework: first determine whether a transaction is a Supply under the statutory definition, then classify it as a Good or Service to apply HSN/SAC, rates, invoicing and composition or reverse charge rules. Next establish the Place of supply and Time of supply to allocate destination tax and fix tax liability; apply valuation rules and the correct rate. Compute output tax and deduct eligible Input Tax Credit, subject to documentary, receipt and blocked credit rules, to arrive at the payable tax per IGST/CGST/SGST heads. (AI Summary)

Composition scheme limited to goods suppliers; smaller taxpayers face streamlined levy but lose input tax credit rights.
The Model GST Law offers a composition scheme for small taxpayers based on aggregate turnover computed on an all India PAN basis; registration is required, the scheme is unavailable for suppliers of services, inter state suppliers, supplies via certain e commerce operators, and notified manufacturers, and persons under the scheme cannot collect tax or claim input tax credit, with withdrawal and transitional adjustments to credit on specified stock and capital goods where eligibility ceases. (AI Summary)

Composition scheme: simplified tax option for small taxpayers with restricted eligibility and no entitlement to input tax credit.
The Model GST Law's composition scheme provides an alternate simplified levy for small taxpayers subject to aggregate turnover limits, mandatory registration and all India PAN application; excluded are suppliers of services, inter state outward supplies, supplies via specified e commerce operators and notified manufacturers. Opting persons cannot collect tax from recipients or claim input tax credit. On becoming ineligible, a taxable person may claim credit for inputs, inputs in semi finished and finished goods and capital goods held immediately before ineligibility, subject to prescribed adjustments. (AI Summary)

VAT on works contracts: tax applies to goods incorporated with valuation, composition option, and TDS obligations following incorporation.
The Odisha VAT Act treats a works contract as a deemed sale of goods incorporated during execution; VAT applies to the value attributable to transfer of goods when incorporated, with statutory deductions for identifiable labour and service components and prescribed presumptive percentage slabs where such components are not verifiable. An optional composition scheme is available to works contractors and developers, subject to forfeiture of input credit, specified compliance, and conditions governing interstate procurement and TDS interactions. (AI Summary)

Input tax credit safeguards require purchasers to verify seller tax payment to retain credit, shifting compliance burden to buyers.
The Odisha VAT Amendment 2015 raises turnover thresholds and expands composition eligibility, establishes joint and several VAT liability between contractors and subcontractors with proportionate payment rules and rebuttable proof of tax payment, caps input tax credit to tax actually paid requiring buyer verification, abolishes pre-issuance registration inquiry in favour of electronic registration, empowers authorities to demand security and cancel registration after hearing, reforms audit and assessment procedures including an assessment-in-lieu regime with fixed penalties and extended time limits, and revises refund and appellate timeframes. (AI Summary)

Service tax versus VAT on supply of food: courts urge bifurcation to prevent overlapping taxation on the same bill.
The core issue is whether the price charged for supplied cooked food is taxable both as a deemed sale under Article 366(29A)(f) and state VAT, and as a declared service under central service tax law (section 66E). Case law is divided: some authorities treat the bill as a non divisible sale taxable by the State, while others uphold service tax on the service portion and recommend that VAT not be imposed on that portion. Courts have urged formulation of bifurcation/valuation rules to prevent overlapping taxation. (AI Summary)

Stamp duty value substitution may be deemed full consideration for transfers of immovable property held as stock-in-trade.
Transfers of immovable property held as stock-in-trade must for tax purposes be measured by the value adopted by stamp valuation authorities when that value exceeds the reported sale consideration, with procedural safeguards allowing reference to an approved valuer and application of valuation officer findings. The stamp duty value can be taken as of the agreement date rather than registration where any part of consideration was received non-cash on or before the agreement, and a token non-cash receipt may invoke that dating exception. (AI Summary)

Supply of food as sale or service: overlap between VAT and service tax raises double taxation concerns despite deeming provisions
Constitutional and statutory deeming provisions treat supplies of food and drink for consideration as sales, allowing State VAT laws to tax restaurant and hotel supplies as sales of goods, while Central declared service provisions and notifications capture a service element in the same transactions, producing overlapping tax bases and litigation about incidence, valuation and jurisdiction. (AI Summary)

TDS on director remuneration: expanded to require deduction on non-salary payments to directors, aligning with service tax reverse-charge tracking.
The amendment inserts a new clause in Section 194J so that persons (other than individuals or Hindu undivided families) paying any remuneration, fees or commission to a director of a company, where such sums are not subject to salary withholding, must deduct tax at source at the prescribed rate; this applies only where no employer employee relationship exists and aligns withholding with service tax reverse charge tracking. (AI Summary)