Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-4-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.7 How will the place of supply be determined? Ans. It is important to determine whether a transaction is intra-State or inter-State as GST (i.e. CGST plus SGST or IGST, as the case may be) will be applicable accordingly. For goods , the place of supply would be location where the goods are delivered. For services the place of supply would be the recipient location. However, there are multiple scenarios such as for supply of services in relation to immovable property, wherein this principle will not apply and specific rules will prevail. Thus, th
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protection favouring imports which will boost domestic manufacturing. Also, lagging regions will catch up with more advanced regions. Getting the design of the GST right is therefore critical. Specifically, the GST should aim at tax rates that protect revenue, simplify administration, encourage compliance, avoid adding to inflationary pressures, and keep India in the range of countries with reasonable levels of indirect taxes. Q .10 How will GST benefit industry, trade and agriculture? Ans. The GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture. Q.11 How will GST benefit the exporters? Ans. The su
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#8377; 10 lakh both for goods and services for all the States and Union Territories may be adopted with adequate compensation for the States (particularly, the States in North-Eastern Region and Special Category States) where lower threshold had prevailed in the VAT regime. Keeping in view the interest of small traders and small scale industries and to avoid dual control, the States considered that the threshold for Central GST for goods may be kept at ₹ 1.5 crore and the threshold for services should also be appropriately high. This raising of threshold will protect the interest of small traders. A Composition scheme for small traders and businesses has also been envisaged under GST as will be detailed in Answer to Question 14. Both these features of GST will adequately protect the interests of small traders and small scale industries. Q.13 How will GST benefit the common consumers? Ans. With the introduction of GST, all the cascading effects of CENVAT and service tax will be mo
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