CA Student

How to Determine the Place Of Supply Of Services GST is destination based tax i.e consumption tax, which means tax will be levied where goods and services are consumed and will accrue to that state. Under GST, there are three levels of Tax, IGST, CGST and SGST and based on the ‘’place of supply’’ so determined, the respective tax will be levied. IGST is levied where transaction is inter-state, and CGST and SGST are levied where the transaction is intra-state.  For understanding Place of Supply for Services the following two concepts are very important namely: location of the recipient of services location of the supplier of services 1. Domestic Transactions These are the transactions where both the parties i.e the supplier as well as recipient of service are in India. Domestic transactions can be further categorized as below: Inter-State (i.e between two different states) Intra-State (i.e within the same state) General Rule for Domestic Transactions In...

How to Determine 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: 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 Example 1 : Determining Place of Supply for Intra-State Supply of Goods Let us assume there is a supplier of craft products, Kloud Kreations Pvt. Ltd with the registered office in Bangalore, Karnataka. It supplies goods to schools in Manipal, Karnataka. Here, since the supplier as well as the recipient are located in same state i.e Karnataka, it will be counted as 'I...

Time, Place and Value of Supply under GST Explained According to the law, the point of taxation means the point in time when goods have been deemed to be supplied or services have been deemed to be provided. The point of taxation enables us to determine the rate of tax, value, and due dates for payment of taxes. The liability to pay CGST / SGST will arise at the time of supply as determined for goods and services. There are separate provisions for time of supply for goods and time of supply for services. The liability to pay CGST / SGST on the services shall arise at the time of supply as determined by GST provisions. How to Determine Time of Supply The time of supply of goods/services shall be the earlier of the following dates: The date of issuing invoice (or the last day by which invoice should have been issued) OR the date of receipt of payment, whichever is earlier If the supplier of taxable goods/service receives an amount up to INR 1000 in excess of invoice amount, ...

REGISTERING UNDER GST Now that we know the basics of GST calculation, the process Important Points to Remember when of ITC claims and filing of returns, let us look at how a taxpayer can register for GST. If you meet any of the conditions listed below, you should obtain your GST registration when the enrollment reopens again [GST is expected to apply from 1st July 2017]: Your aggregate turnover in a financial year exceeds INR 20 lakhs (INR 10 lakhs for Special category states)\  If your turnover includes supply of only those goods/services which are exempt under GST, this clause does not apply To calculate this threshold, your turnover should include the aggregate value of all taxable supplies, exempt supplies, export of goods and/or services and inter-state supplies of a person having the same PAN. Important Points to Remember when Every person who is registered under an earlier law will take registration under GST too. Where a business which is registered has...

WHAT IS SGST, CGST, AND IGST? Suppose goods worth INR 10,000 are sold by manufacturer A in Maharashtra to Dealer B in Maharashtra. B resells them to trader C in Rajasthan for INR 17,500. Trader C finally sells to End User D in Rajasthan for INR 30,000. Suppose CGST= 9%, SGST=9%. Then, IGST= 9+9=18% Since A is selling this to B in Maharashtra itself, it is an intra- state sale and both CGST and SGST will apply, at the rate of 9% each. B (Maharashtra) is selling to C (Rajasthan). Since it is an interstate sale, IGST at the rate of 18% will apply. C (Rajasthan) is selling to D also in Rajasthan. Once again it is an intra-state sale and both CGST and SGST will apply, at the rate of 9% each. *** Any IGST credit will first be applied to set off IGST then CGST. Balance will be applied to setoff SGST. Since, GST is a consumption based tax, i.e., the state where the goods were consumed will collect GST. By that logic, Maharashtra (where goods were sold) should not get any taxes. ...

WHY IS GST A BIG DEAL? GST is a comprehensive, multi-stage, destination-based consumption tax on levied at every stage of value addition in the lifecycle of a product. To understand this better, let us look at each of the terms in detail: Comprehensive: GST will subsume all of the current indirect taxes. Plus, by bringing in a unified taxation system, across the country, it will ensure that there is no more arbitrariness in tax rates. Multi-stage: GST is levied each stage in the supply chain, where a transaction takes place. Value-addition: This is the process of addition to the value of a product/ service at each stage of its production, exclusive of initial costs. Under GST, the tax is levied only on the value added. This is done through Destination-based consumption: Unlike the current indirect taxes, GST will be collected at the point of consumption. The taxing authority with appropriate jurisdiction in the place where the goods/ services are finally consumed will collect...

GST VS CURRENT INDIRECT TAX STRUCTURE To understand GST, it is important that we understand the current indirect taxation system. Direct taxes such as income tax are borne by the person liable to pay the tax; this means that the tax burden cannot be shifted to anyone else. The liability of an indirect taxes on the other hand, can be shifted to another person. So, the person liable to pay the tax can collect the tax from someone else and then pay it to the government; thus shifting the tax burden. The GST tax falls in this category. The current indirect tax structure, which comprises of so many different taxes, can be classified as: Central taxes: levied by the Central govt (includes Central Sales Tax, Excise Duty etc.) State taxes: levied by the various state govts (VAT, Service Tax, Octroi) The current indirect tax has one major problem - the casacading effect. When you buysomething, you pay a tax on tax itself. Let’s understand this with a hypothetical numerical example S...

Gst series starting tomorrow. This series helps you in many concepts of gst also their is much more stuff about gst. Please join that series starting tomorrow only on www.caipccblog.blogspot.com so, download the app or visit my site now and subscribe the site for more notification.