OVERVIEW OF GOODS AND SERVICE TAX (GST)

What is goods and service tax ?

Ans. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

What exactly is the concept of destination based tax on consumption?

Ans. The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.

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Place Of Supply of Goods in GST

Under GST, the ‘Supply’ is a fundamental concept and all the provisions of GST revolves around it. Under Supply, there are three key elements namely time of supply, place of supply and value of supply. These three elements together determine the chargeability of taxes on supply. In this article we will be covering the concept of ‘Place Of Supply’ ‘Place of Supply’ under GST is an important factor as it defines whether the transaction will be counted as intra-state(i.e within the same state) or inter-state(i.e. between two states) and accordingly the changeability of tax, i.e levy of SGST, CGST & IGST will be determined. While determining the levy of taxes based on Place of Supply, two things are considered namely: Location of Supplier: It is the registered place of business of the supplier Place Of Supply: It is the registered place of business of the recipient Let’s understand this with the help of two examples! Determining Place of Supply for Intr...

E Way Bill [An understanding of e-way bill provisions]

A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods . Typically it will show the names of the consignor and consignee , the point of origin of the consignment, its destination, and route . Accordingly, it’s an official shipping document that travels with a shipment, identifies its consignor, consignee, origin and destination, describes the goods, and shows their weight and freight. The Central Government vide Notification No. 27 /2017 – Central Tax dated 30.08.2017 has amended the CGST Rules, 2017, to incorporate the provisions of e-way bill. Detailed analysis of the provisions of e-way bill in question answer form are as follows: 1. When the provisions of e way bill applicable in India? Ans. E way bill provisions shall come into force on such date as the Central Government may, by notification in the Offici...

GOODS AND SERVICE TAX

Goods and Services Tax (GST) is a comprehensive tax on supply of goods or services or both. It eliminates the cascading effect of taxes, as GST is imposed at every stage of supply chain and the input credit is available in across the supply chain. The uninterrupted credit in the supply chain ensures that the end consumer purchases goods and services at a lower price and to ensure this the government has introduced the Anti-profiteering clause based on the experience in Malaysia where GST was implemented from 1st April 2015. Under GST, taxes are paid at all stages in the supply chain i.e. from manufacturing to the end sale to the consumer. Taxes are levied at all the stages and input tax credit is available to the extent of the tax paid during the purchase. The end consumer will not pay taxes directly to GST authorities; the retailer pays the taxes on behalf of the end consumer. The overall idea of having GST in India is to increase the tax base over a period, and this wi...

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