Introduction & Meaning - Place of Supply - GST Law and Procedure [January, 2019] - GST

..... ity of CGST Act, 2017 passed by the Parliament. (ii) State tax (SGST), Levied & collected under the authority of SGST Act, 2017 passed by respective State. Why the third tax in the name of IGST? Before discussing the IGST Model and its features, it is important to understand how inter-State trade or commerce is being regulated in the present indirect tax system. It is significant to note that presently the Central Sales Tax Act, 1956 regulates the inter-State trade or commerce (hereinafter referred to as “CST”), the authority for which is constitutionally derived from Article 269 of the Constitution. Further, as per Article 286 of the Constitution of India, no State can levy sales tax on any sales or purchase of goods that t .....

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Introduction & Meaning - Place of Supply - GST Law and Procedure January, 2019 - GST

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..... ntry at the same time. etc. 2. The Central Sales Tax Act, 1956 suffers from the following shortcomings. CST is collected and retained by the origin State, which is an aberration. Any indirect tax, by definition, is a consumption tax, the incidence of which, is borne by the consumer. Logically, the tax must accrue to the destination State having jurisdiction over the consumer. Input Tax Credit (hereinafter referred to as ITC) of CST is not allowed to the buyer which, results in cascading of tax (tax on tax) in the supply chain. Various accounting forms are required to be filed in CST viz., C Form, E1, E2, F, I, J Forms etc. which add to the compliance cost of the business and impedes the free flow of trade. Another negative feature of CST is .....

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Introduction & Meaning - Place of Supply - GST Law and Procedure January, 2019 - GST

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..... e accrues to the Government (iii) Separate provisions for the supply of goods and services have been made for the determination of their place of supply. Separate provisions for the determination of the place of supply in respect of domestic supplies and cross border supplies have been framed. Provisions for determination of place of supply in GST Law Basis the above guiding principles, Chapter V of the IGST Act [Sections 10 to 13] prescribes the provisions relating to place of supply of goods and services in domestic as well as cross-border transactions. The provisions prescribe both general and specific rules to determine place of supply of goods and services in various circumstances. The determination of ‘place of supply’ and .....

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Introduction & Meaning - Place of Supply - GST Law and Procedure January, 2019 - GST

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