Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 4-7-2016 – Recommendations of Empowered Committee (First Discussion Paper) According to First Discussion Paper on Goods and Services Tax in India by the Empowered Committee of State Finance Ministers (2009), IGST model has been recommended for taxation of inter-state transaction of goods and services. Accordingly, the scope of IGST Model is that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services. The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the cred
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f the following 11 Chapters 33 Sections 8 Definitions Short till, extent and commencement (Section 1) This legislation is called the integrated Goods and Services Tax Act, 2016 (in short IGST), an Act to levy, collect and administer IGST in India. This Act shall be applicable to whole of India, i.e., including the State of Jammu & Kashmir. Presently, Service Tax does not apply to State of Jammu & Kashmir but Central Excise Act, 1944 applies to that state. What is meant by 'India' is defined in section 2(35) of Goods and Services Tax Act, 2016. The Act after being legislated shall come into force from a date which will be notified by the Central Government by way of a notification. It may also appoint different dates for enforcement of different provisions of the Act. Definitions (Section 2) There are seven definitions in section 2, viz, Appropriate State Government Integrated Goods and Service Tax (IGST) Input Tax Input Tax Credit Supply Output tax It has been specifica
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and 'services' are defined in the Constitution of India itself vide 122nd Amendment. CGST Act in its section 2(50) also defines IGST as tax levied under the IGST Act. IGST shall also apply to import of goods and services into India. The explanation stipulates that any supply of goods or services in the course of import of goods or services into Indian territory shall be deemed to be supply of goods / services in the course of inter-state trade or commerce and hence liable the IGST. It has also been proposed that like import transactions, export of goods and services shall be deemed to be supply in course of inter-state trade or commence. Interstate trade or commence will, therefore include supply of goods / services in the course of – Inter-state trade or commence Import into Indian territory (deemed to be inter-state) Export (deemed to be inter-state) Thus, IGST shall apply to inter-state transactions and import as well as export transactions (deemed to be inter-state transac
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