Tag: #gstindia

Input Tax Credit of the taxes paid under CGST against SGST and vice versa: The basic requirement of implementing CGST and SGST under Dual GST through different statues in the country was to maintain the revenue share of the State and Centre and to maintain their sovereignty along with minimum dependence on each other for revenue. Thus, in situation where such complex are the relations and ...

Let’s assume Tax Rate in GST is 20%, out of which CGST is 10% and SGST is 10%. IGST leviable on Inter State sales is 20% i.e. (Aggregate of CGST @ 10% and SGST @ 10%). a) Levy of Tax under GST: Two Cardinal Rules for Levy of Tax under GST Tax Leviable in an Intra State Transaction i.e. Within Same State: CGST and SGST ...

In the last update, we had discussed about the general rule for the determination of Place of Supply of Service. The general rule provides that wherein recipient is a registered person i.e. B2B Supply or in case wherein recipient is unregistered person i.e. B2C Supply but his address is available on record, location of such recipient would be the place of supply of service. In ...

Section 6 of the Draft IGST Law provides how to determine Place of Supply of Service. Provisions of Section 6 of Draft IGST Law determining Place of Supply of Service can be divided in two parts, one where general rule is applicable and second where certain specific rules are applicable. Section 6(2) and 6(3) of the Draft IGST Law contains provisions regarding applicability of general ...

Is this a hint that all is not well. Meeting of GST Council which was scheduled to be held on 24th and 25th November has been postponed by a week. The reason is simple and not hard to understand. There are differences which are yet to be resolved and more particularly would be the issue regarding Administrative Control. Nobody is ready to succumb to the pressure. ...

The Exemption List under GST is under Preparation. It is expected that Grains, Non-Mineral Water might be exempt and Biscuits, Butter and Cheese might attract GST. At present there are about 300 items which are exempt under Excise Duty and about 90 items are exempt under State VAT. The exemption list is going to be cut short so that there are minimum exemptions and the supply chain ...

In the previous update, we had discussed various provisions of how a bill is classified as Money Bill or a Financial Bill. CGST/IGST Bill is going to be put before by the Government before the Parliament in the winter session commencing from November 16. The passage of the 122nd Constitutional Amendment Bill ended with the Opposition hell bent on the assurance from the Government that ...

Now, until this update, we have discussed about destination and origin based taxation, differentiation between B2B Supply and B2C Supply, how Destination based taxation allows free flow of credit and how IGST Model in India allows Indian GST to be destination based taxation. It has also been discussed that how the revenue accrues to the importing state where the goods and/or services are consumed under ...

The big question is whether in present scenario of GST in India, whether we are following destination based taxation and if we are not following ideal destination based taxation system, then how tax would accrue to the consuming state. As per the proposed model, IGST would be levied in the state wherein the goods or services are supplied and the consumption state would not be ...

Lets discuss how Destination Based Taxation allows seamless flow of credit and how B2B supplies and B2C supplies play their part in determining the jurisdiction to which revenue would accrue. Businesses to be relieved of Tax burden and allowed credit of tax paid in case of Business to Business supplies and final burden of tax to be borne by consumer in Business to Consumer supplies ...