APPORTIONMENT OF \u2018IGST\u2019 AND SETTLEMENT OF FUNDS
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 3-4-2017<\/p>\n
Finance Commission
\nArticle 280 of the Constitution of India provides for the establishment of the Finance Commission. According to Article 280(1) the President of India shall, within four years from the commencement of the Constitution and thereafter at the expiration of every 5th year or at such earlier time as the President considers necessary constitute a Finance Commission. 14 Finance Commissions have so far constituted. Currently the 14th Finance Commission is functioning.
\nDistribution of tax proceeds among Central and States
\nAmong the various functions, the Finance Commission is to suggest the criteria of distribution between the Union and States of the net proceeds of taxes which are to be or may be divided between them and the allocation of shares of the proceeds of such taxes in percentages between them. The Finance Commission rec<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nVI Finance Commission = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or services or both to an unregistered person to a registered person paying tax under Section 10 of the CGST Act; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to each of such States or Union Territories, as the case may be in a financial year. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" APPORTIONMENT OF \u2018IGST\u2019 AND SETTLEMENT OF FUNDSBy: – DR.MARIAPPAN GOVINDARAJANGoods and Services Tax – GSTDated:- 3-4-2017 Finance Commission Article 280 of the Constitution of India provides for the establishment of the Finance Commission. According to Article 280(1) the President of India shall, within four years from the commencement of the Constitution and thereafter at the … Continue reading “APPORTIONMENT OF \u2018IGST\u2019 AND SETTLEMENT OF FUNDS”<\/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-2567","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2567","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=2567"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2567\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n80%
\n90
\n10
\nVII Finance Commission
\n85%
\n90
\n10
\nVIII Finance Commission
\n85%
\n90
\n10
\nIX Finance Commisison
\n85%
\n90
\n10
\nX Finance Commission
\n77.5%
\n90
\n10
\nSource: Finance Commission Reports
\nRecommendations of Finance Commission on excise duty
\nFinance Commission
\nState share of Excise duty
\nDistribution of excise duty to the States on the basis of
\nPopulation
\nBackwardness of States % of the poor in the States etc.,
\nI Finance Commission
\n40% of 3 duties
\n40
\n60
\nII Finance Commission
\n25% of 8 duties
\n40
\n60
\nIII Finance Commission
\n20% of 35 duties
\n40
\n60
\nIV Finance Commission
\n20% of 45 duties
\n80
\n20
\nV Finance Commission
\n20% of 45 duties
\n80
\n20
\nVI Finance Commission
\n20% of 45 duties
\n75
\n25
\nVII Finance Commission
\n40% of all duties
\n25
\n75
\nVIII Finance Commission
\n45% of all duties
\n25
\n75
\nIX Finance Commission
\n45% of all duties
\n25
\n75
\nX Finance Commission
\n45% of all duties
\n20
\n80
\nSource: Finance Commission Reports
\nApart from the i<\/p>\n
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\n * in respect of inter-State supply of goods or services or both where the registered person is not eligible for input tax credit;
\n * in respect of inter-State supply of goods or services or both made in a financial year to a registered person, where he does not avail of the input tax credit within the specified period and thus remains in the integrated tax account after expiry of the date for furnishing of annul returns for such year in which the supply was made;
\n * in respect of import of goods or services or both by an unregistered person or by a registered person paying tax under Section 10 of CGST Act;
\n * in respect of import of goods or services or both where the registered person is not eligible for input tax credit;
\n * in respect of import of goods or services or both made in a financial year by a registered person, where he does not avail of the said credit w<\/p>\n
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\nWhere the taxable person making such supplies is not identifiable, the said balance amount shall be apportioned to all States and the Central Government in proportion to the amount collected as State tax or, as the case may be, Union territory tax, by the respective State or, as the case may be, by the Central Government during the immediately preceding financial year.
\nApportionment of interest, penalty and compounding
\nSection 17(3) of the Bill provides that the provisions of Section 17(1) and 17(2) relating to appointment of integrated tax shall, mutatis mutandis apply to the apportionment of interest, penalty and compounding amount realized in connection with the tax so apportioned.
\nTransfer of apportioned amount
\nSection 17(4) provides that where an amount has been apportioned to the Central Government or a State Government, the amount collected as integrated tax shall stand reduced by an amoun<\/p>\n
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