Delay in issue of SGST Notifications by the States – Implications
By: – Ramnarayan Balakrishnan
Goods and Services Tax – GST
Dated:- 14-9-2017
The purpose of writing this article is to point out that there are no 'mutatis mutandis' CGST rate replication provisions in the SGST laws, and as such, without appropriate notifications under the SGST laws of the respective states, the levy of SGST in these states cannot be considered as legal.
In the above background, it is a bit surprising that certain CGST notifications have not been replicated under SGST by the respective states even within a reasonable period of time. This gives rise to legal as well as system related (gstn.com) issues, which are analyzed below:
1. Imp
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e changes under their respective SGST laws. The balance 13 states are yet to notify the same.
* Andhra Pradesh
* Bihar
* Chattisgarh
* Delhi
* Goa
* Gujarat
* Haryana
* J&K
* Jharkhand
* Karnataka
* Madhya Pradesh
* Maharashtra
* Nagaland
* Odisha
* Rajasthan
* Tamil Nadu
* Tripura
* West Bengal
As mentioned earlier, there are no 'mutatis mutandis' CGST rate replication provisions in the SGST laws, and as such, without appropriate notifications under the SGST laws of the respective states, the levy of SGST in these states cannot be considered as legal.
As such, if we take the state of Telangana (which hasn't yet notified the above rate changes) as the example, the only option to calculate GS
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e new rates for services would be applicable. This would lead to the very same situation outlined in para 1.1 above – the CGST and Goa SGST rates for the above 6 days will not align.
2. Implications from the GSTN perspective
Now, it is pertinent to note that the GSTN portal doesn't seem to be accepting any line item in which the CGST and SGST tax rates/ amounts differ, since the information pertaining to each transaction is captured as a single line item (it might have been possible, if, the CGST and SGST were captured as different line items). As such, if we create rules which have 6% CGST and 9% SGST, we may not be able to file the returns in the GSTN portal.
The apt approach would be to adopt the SGST rates only as and when the respec
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