Definition of Turnover in a State and Zero rated supply
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 25-1-2017<\/p>\n
DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
\nDefinition of Turnover in a State and Zero rated supply
\nTaking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
\n2(107): Turnover in a State: The new definition reads as follows:
\nTurnover in a State means the aggregate value of all taxable supplies, exempt supplies, exports of goods and \/ or services made within a State by a taxable person and inter-state supplies of goods and \/ or services made from the S<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n is Act; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Zero rated supply: the new definition reads as follows: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Definition of Turnover in a State and Zero rated supplyBy: – Pradeep JainGoods and Services Tax – GSTDated:- 25-1-2017 DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Definition of Turnover in a State and Zero rated supply Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of … Continue reading “Definition of Turnover in a State and Zero rated supply”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2136","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2136"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2136\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nAs a result the taxable person opting for composition levy, while calculating the limit of 50 lakhs as turnover in a state won't have to include such non taxable supplies giving the benefit of additional margin of turnover.
\nAlso the Input service distributors, while calculating the ratio of the units where the cenvat has to be distributed, won't have to include the value of non taxable supplies to the total turnover.
\nBut there is definition of "exempt service" given under Section 2(44) which reads as follows:-
\n“exempt supply” means supply of any goods and\/or services which are not taxable under this Act and includes such supply of goods and\/or services which attract nil rate of tax or which may be exempt from tax under<\/p>\n
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\nZero rated supply means supply of any goods and\/or services in terms of section 15 of the IGST Act 2016
\nIn the IGST act it is defined as any of the following taxable supply of goods and\/or services, namely –
\n(a) export of goods and\/or services; or
\n(b) supply of goods and\/or services to a SEZ developer or an SEZ unit
\nFirst of all it should be noted that reference is given that of section 15 whereas it should have been section 16. There seems to be a clerical error. Further if compared to the old definition, it can be noted that supply to SEZ unit or developer have been included in the scope of zero rated supplies. Also the old definition had the condition that cenvat shall be allow<\/p>\n
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