Get Yourself GST Ready
Goods and Services Tax (GST) is India’s biggest indirect tax reform in decades
GST will integrate India into one common market by removing the various tax and fiscal barriers between the states. Goods and Services Tax (GST), as the name suggests will be tax levied on goods and services during the point of sale or rendering of service. GST will be applicable for all goods and services, expect the exempted class of goods and service. Having passed various stages, the GST regime in India is now set to roll out from 1st July, 2017.
Levy of GST
Both the Central Government and State Governments would simultaneously levy GST across the value chain. GST levied and collected by the Central Government would be Integrated Goods and Services Tax (IGST) and the State Governments would levy and collect (SGST) on transactions within the State.
Under GST, both the IGST and CGST would become payable at the “time of supply”, as defined in the GST Law. In terms of goods, time of supply would be on removal of goods or receipt of payment or issuance of invoice or date on which the buyer shows receipt of goods. For services, time of supply is on issuance of invoice or receipt of payment or date on which recipient shows receipt of services
Integrated Goods and Services Tax (IGST)
Integrated Goods and Services Tax is a tax levied on the supply of any goods or services in the course of inter-state trade or commerce. IGST would be applicable to all of India
State Goods and Services Tax (SGST)
SGST is tax levied under the GST regime on intra-state supplies of goods and services. SGST will be administered by the respective State Government.
Definitions of Goods & Service as per GST
Goods under GST
Section 2(49) of the model law on GST defines goods as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply. Hence, as per the definition, goods would include movable property, actionable claim, growing crops/grass, things attached to land or forming part of land, materials, commodities and articles. Goods as defined by GST Model Law does not however include money, securities, immovable property and land.
Services under GST
According to the Model Law on GST, Section 2(92) defines services as “anything other than goods”. Hence, anything or any activity would fall under the GST tax coverage, and anything not defined as a goods will be defined as a service. Further, as per GST Law, service is defined as any activity relating to use of money or its conversion by cash or any other mode, from one form, currency or denomination to another form, currency or denomination, for which a separate consideration is charged. However, though services include transactions in money, it does not include money and securities.
Know more about GST
We have compiled additional material for GST in our blogs to help you become GST ready. Check out the following articles to know more
Guide to CGST, SGST and IGST GST is a destination tax, meaning the tax base will shift from origin to consumption. Hence, the imports or end-use will be liable to tax and exports or production will be relieved of the burden of tax. Under the present
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