Taxpert Professionals || Presentation on IGST
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Transcript of Taxpert Professionals || Presentation on IGST
PRESENTATION ONINTEGRATED GOODS AND SERVICES TAX &
COMPENSATION DRAFT LAW
BY: PARTH SINGHALTAXPERT PROFESSIONALS PRIVATE LIMITED
INDEX TO PRESENTATION
• Introduction
• Integrated Goods and Services Tax [IGST]
• Supply of goods and services
• Place of supply of Goods and services
• Input Tax Credit
• Zero Rated Goods
INTRODUCTION
• Under the proposed GST Draft Bill, all intra-state supplies
of Goods and Services are chargeable to SGST and CGST
which are equal in rate.
• Inter-state sales are chargeable to IGST which shall be
equal to the aggregate rate of CGST and SGST.
• Thus under GST regime, sales all over India would become
tax neutral, i.e. No difference on account of difference in
tax Rates.
Supplies of Goods and Services
Intra State
CGST SGST
Inter State
IGST
INTEGRATED GOODS AND SERVICES TAX [IGST]
• A revised draft of Integrated Goods and Services tax (IGST) has been released by the
central government on 28 November 2016.
• The provisions of the Bill will apply to whole of India.
• The date of coming in will be notified by the Central Government by means of a
notification in the Official Gazette.
Charging Section : Section 5 :
“ There shall be levied a tax called Integrated Goods and Services Tax on all supplies of goods
and /or services made in the course of inter state trade or commence on the value determined
under section 15 of CGST Act, 2016 and at such rate as may be notified by the Central
Government”.
SUPPLY OF GOODS IN COURSE OF INTER STATE TRADE
IGST on Goods
Location of Supplier and Place of Supply in different States
Supply in the course of import till they cross the
Customs Frontiers of India
Supply in the course of Export (supplier located in India, place of Supply
outside India)
SUPPLY OF SERVICESIN COURSE OF INTER STATE TRADE
IGST on Services
Location of Supplier and place of Supply of Service is in different
states
Services in the Course of Import.
Export of services wherein the recipient of Services is located
in non-taxable territory.
COMMON PROVISIONS
• Any supplies of Goods/services to/from units located in SEZs or developers of SEZs shall
be treated as inter-state supply for the purpose of GST.
• Any supplies of Goods/services in taxable territory not being intra-state sale and not
covered elsewhere, shall be considered as inter-state sale.
PLACE OF SUPPLY
Pla
ce o
f Su
pply Goods
Location of Goods
Location of recipient
Services
Location of recipient
Location of supplier
Actual Place of Performance
PLACE OF SUPPLY IN CASE OF GOODS
Location of Goods at the
time of Delivery
Supply involves movement of Goods
Supply does not involve movement
Supply involves installation/ assembly – Location of such
installation/assembly
Place where Goods are
taken on board
Supply on board a
conveyance (such as vessel or aircraft)
Principal place of Business of
Recipient
Goods are delivered to some other person, on the direction of third
person, either by way of transfer of documents of
title or otherwise.
Such third person shall be the deemed resident.
PLACE OF SUPPLY IN CASE OF SERVICES - GENERAL
Place of Supply of Services
Registered person Location of recipient
Unregistered Person
Address Available on record – Location of
Recipient
Address Not available on record – Location of
Supplier
PLACE OF SUPPLY IN CASE OF SERVICES - SPECIFIC
Services related to immovable property- Location of the property or where it is intended to be located
Admission to amusement parks, exhibitions etc –Location of such event or park
Services on board a conveyance – First Point of Departure of such conveyance
Mail, courier services – Place where goods are handed over to the carrier. (unregistered person)
Passenger transportation –Place where recipient embarks on the journey (unregistered person)
PLACE OF SUPPLY IN CASE OF SERVICES - TELECOM SERVICES
• For Post paid services – Billing address of the recipient.
• For prepaid services, place of business of the supplier from where the voucher is
purchased.
• In other cases, address of recipient as per records of the supplier of service.
• In case of Fixed Line/D2H Television place where the fixed line/antennae/cable
connection etc is installed for provided for providing the services.
PLACE OF SUPPLY ONLINE INFORMATION DATABASE ACCESS AND RETRIEVAL SERVICES
• With respect to OIDARS place of provision of Service shall be the location of recipient
of service.
• Person located in the non-taxable territory (supplier) shall be liable to pay IGST.
• Any person located in taxable territory representing such person shall take registration
and pay IGST on behalf of such person.
• If such person does not have a physical presence or representative in taxable territory, he
may appoint a person in the taxable for the purpose of paying IGST.
INPUT TAX CREDIT
Input Credit of IGST
Adjusted against liability of IGST
Adjusted against liability of SGST or CGS if credit
is still left
Input credit of SGST
Adjusted against output SGST
Adjusted against liability of IGST
Input credit of CGST
Adjusted against output
liability of CGST
Adjusted against output
liability of IGST
ZERO RATED SUPPLIES
• As per section 16, Export of Services/Goods and supply of Goods/Services shall be zero
rated i.e. chargeable to zero rate of tax.
• The registered person making the supply shall be eligible to claim refund in respect of the
input tax credit.
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