Category: Uncategorized

Treatment of Import/Export under GST

Imports under GST Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full…

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Administration of GST

Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States…

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Taxes Replaced by GST

At the Central level, the following taxes are being subsumed: Central Excise Duty, Additional Excise Duty, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs.   At the State level, the following taxes are being subsumed: Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales…

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Changes in IEC after GST

Importer Exporter Code (IEC): In GST regime, GSTIN would be used for credit flow of IGST paid on import of goods. Therefore, GSTIN would be the key identifier. DGFT in its Trade Notice No. 09 dated 12.06.2017 has stated that PAN would be the Import-Export code (IEC). However, while PAN is identifier at the entity level, GSTIN would be…

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What is GST Eway Bill

What is an e-way bill? E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A ‘movement’ of goods of more than Rs 50,000 in value cannot be made by a registered person without an e-way bill. E-way bill will also be allowed to be generated or cancelled through…

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What is Reverse Charge under GST

What is Reverse Charge? Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. When is Reverse Charge Applicable? A. Supply from an Unregistered dealer to a Registered dealer If a vendor who is not registered under GST,…

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What is CGST, SGST and IGST

What is Central Goods and Services Tax (CGST)? Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the Central Government and will be governed by the CGST Act. SGST will also be levied on the same Intra State supply but will be governed by the State Government. This implies that both…

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Who is Exempt from GST

Who needs GST Registration? Aggregate Turnover Criteria Any supplier of goods and/or services who makes a taxable supply with an aggregate turnover of over Rs.20 lakhs in a financial year is required to obtain GST registration. In special category states, the aggregate turnover criteria is set at Rs.10 lakhs. Special Category States under GST: Currently, Assam, Nagaland,  Jammu & Kashmir,…

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GST on Agriculture

Agriculture has always been an interesting area for tax planning, so let us understand how agriculture is being hit by GST: 1. Agriculturist Means: Agriculturist means an individual or a Hindu undivided family who undertakes cultivation of land- a) By own labour b) By the labour of family c) By servants on wages payable in cash or kind or by…

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Composition Scheme under GST

What is composition levy under GST? The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakhs ( Rs. 50 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it…

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