Goods and Services Tax – GST – By: – Bimal jain – Dated:- 26-10-2016 – Dear Professional Colleague, Video Presentation on Supply, Time of Supply & Place of Supply of Goods and/or Services under GST Goods and Services Tax ( GST ) is a destination based consumption tax levied at multiple stages of production and distribution of goods and services, with taxes on inputs credited against taxes on output. GST is going to be big game changer and under proposed GST regime, all the major taxes levied under the indirect taxation i.e. Central Excise, Service tax, VAT/CST etc., would be brought under the ambit of GST. Hence, the prevailing concepts of manufacturing of goods/ provision of services/ sale of goods would no longer be relevant as tax would be levied on supply of goods and/or services and common base has to be arrived at for levy & collection of GST in all cases. Closely linked to the taxable event of supply , are the principles governing the place of supply to determine the ta
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apter-IX of the ModeI IGST Act, 2016 ( ModeI IGST Act ). I: Time of supply of goods For normal supply: CGST/SGST and IGST on the goods shall be payable at the earliest of the following dates on which: Goods are removed for supply to the recipient (for goods required to be removed); Goods are made available to the recipient (for goods not required to be removed); Invoice is issued by supplier; Payment is received by supplier; Recipient shows receipt of goods in his books of account. For continuous supply of goods: Situation Time of supply Successive statements of accounts or successive payments are involved Date of expiry of the period to which such successive statements of accounts or successive payments relate No successive statements of account Date of issue of invoice (or any other document) or Date of receipt of payment Whichever is earlier For supply of goods under reverse charge: Time of supply shall be the earliest of the following dates of: Receipt of goods, Payment, Receipt of
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the payment is linked to the completion of an event Time of completion of that event Supply of services under reverse charge: Time of supply shall be determined in same manner as in case of goods discussed supra. Understanding Place of supply of goods and/ or services At first place, the importance of determination of place of supply, lies in identification of nature of supply as Inter-State or Intra-State , based on which CGST & SGST/ IGST would be applicable. Similarly, principles of place of supply hold importance for determining imports and exports of goods and/or services, for which one of the condition is that place of supply should be in India (for imports) and out of India (for exports). Principles for determining place of supply of goods: Section 5 of the Model IGST Act governs the principles of place of supply for goods as under: Scenario Place of supply When movement of goods is involved Location of goods where movement terminates for delivery When goods are supplied by
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1 General Rule B2B supplies: location of recipient B2C supplies: location of recipient where address on record exists, If not, then the location of supplier of services Specific Rules for identified situations & different treatment for certain B2B and B2C of specified services 1. Immovable property related services Location of immovable property Where property / vessel located in more than one state- proportionate allocation amongst states as per the contract or on reasonable basis 2 Performance based services Place of actual performance -> Specific services covered such as supply of restaurant and catering services, health service etc.- place of performance Services in relation to training and performance appraisal- B2B supply: location of recipient B2C supply: place of performance 3 Event based services Admission and ancillary services: Place where event held or where the park/ other place is located Organization of event and services in relation to such event and ancillary se
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here are numerous parameters given under the Model GST Law, for determining time of supply and place of supply for goods &services, which may be a major challenge initially for successful transition. Watch the video to understand the intricacies of taxable event i.e. Supply under GST along with principles of time of supply and place of supply of goods and/or services. With the intention of throwing light on key areas under the principles of time of supply and place of supply of goods and/or services under GST, and the related areas to be worked upon under the Draft Model GST Laws – CGST, SGST and IGST, this video presentation made by Mr. Bimal Jain on Supply, Time of Supply(POT) and Place of Supply for Goods and Services in GST at the Second series of Educative & Knowledge Series on GST, organised by the PHD Chamber of Commerce on October 7, 2016, focuses on following key areas along with various suggestions/ issues: Overview of existing Indirect Taxes Meaning & Scope of ta
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