Zero rated supply and consequences of charging IGST in place of CGST and SGST
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 1-3-2017<\/p>\n
What is Zero rated supply and what is the benefit and implication of the such supply. Just look at the provision of the same provided in Revised GST Law and IGST Law
\nAs per revised GST Law Zero rated Supply has been provided in Section 2(111)
\n” Zero rated supply ” means supply of any goods and \/or services in terms of section 15 of the IGST Act, 2016; and ”
\nAs per revised IGST Law how the Zero rated supply has been defined in Section-2(29) ” Zero rated supply” shall have the meaning assigned to it under Section 15 ; and ”
\nBut there is typographical error in both the definitions under both laws as the “Zero rated Supply” is defined in Section 16 of the IGST Act, 2016.
\nZero Rated Supply [ Section- 16 ]
\n * It means that taxable supply of goods and\/ or services namely ;
\n * Export of goods and \/ or services
\n * Supply of go<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \n * Taxable person who considered the transaction as intra-state and later found to be inter State shall not be liable to pay any interest on the amount of IGST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n wish that both the provision should have been embedded in draft law in one place (one section) in order to avoid any misinterpretation. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Zero rated supply and consequences of charging IGST in place of CGST and SGSTBy: – Sanjeev SinghalGoods and Services Tax – GSTDated:- 1-3-2017 What is Zero rated supply and what is the benefit and implication of the such supply. Just look at the provision of the same provided in Revised GST Law and IGST Law … Continue reading “Zero rated supply and consequences of charging IGST in place of CGST and SGST”<\/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-2198","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2198","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=2198"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2198\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nLaw is silent on the first mistake where TP has paid tax under IGST and where he need to pay SGST and CGST . Whether he need to pay interest on amount of tax payable as SGST and CGST.
\nAbout the Author:
\nAuthor is practicing chartered accountant in Gurgaon and having specialization in Service Tax and Haryana VAT. He can be reached at sanjeev.singhal@skaca.in. WWW. skaca.in
\n Reply By Ramanujam Varadarajan as =
\nAs regards consequence of tax wrongly deposited, my understanding of Sec.70 of Draft law, is different from the the position explained in the article. In other words,
\na. On a transaction where IGST is paid instead of CGST\/SGST, no interest will apply on CGST\/SGST payable. No clarity as to whether IGST wrongly paid can be availed as refund or it can be appropriated as CGST\/SGST liability.
\nb. On a transaction where CG<\/p>\n
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\n Dated: 4-3-2017
\n Reply By Ramanujam Varadarajan as =
\nSec.70 of SGST\/CSGT law and Sec.19 of IGST law jointly read together confirms the view that if any tax is wrongly paid as inter-state instead of intra-state and vice versa, no interest would apply on payment of tax correctly.
\nOnly point which requires further clarity is if IGST is wrongly paid instead of CGST\/SGST (or vice versa), the provision states that the tax wrongly paid is to be granted as refund, subject to conditions. In other words, there is NO automatic appropriation provided for tax wrongly paid against tax correctly payable. While tax correctly payable is to be paid again, tax wrongly paid is to be claimed as refund as per provisions (working capital blockage!).
\n Dated: 6-3-2017
\n Reply By Sanjeev Singhal as =
\nYes there is automatic appropriation . it will be refunded on one hand an<\/p>\n
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