Applicability of GST Compensation Cess on Penultimate Export Sales\/ Procurement from Unregistered Dealers
By: – Ramnarayan Balakrishnan
Goods and Services Tax – GST
Dated:- 28-10-2017<\/p>\n
Vide my article dated 14 September 2017 published by Tax Management India, I had highlighted the problems from the legal and systems perspectives owing to delay in issue of SGST Notifications by the States. The problems I had highlighted in the above article remain unresolved to this date.
\nPending the above, there are two new developments which seem to have thrown up a new issue, which I have discussed below:
\n1. Reduced Rate of GST on penultimate export sale
\nIn what seems to be an effort to avoid blockage of cash flow to merchant exporters,<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the Central Government = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Applicability of GST Compensation Cess on Penultimate Export Sales\/ Procurement from Unregistered DealersBy: – Ramnarayan BalakrishnanGoods and Services Tax – GSTDated:- 28-10-2017 Vide my article dated 14 September 2017 published by Tax Management India, I had highlighted the problems from the legal and systems perspectives owing to delay in issue of SGST Notifications by the … Continue reading “Applicability of GST Compensation Cess on Penultimate Export Sales\/ Procurement from Unregistered Dealers”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8426","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8426","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=8426"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8426\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nSGST @ 0.05%
\n0.05
\nSubject to equivalent notifications to be issued by the State Government
\nGST Compensation Cess (assuming that the car sold has engine capacity > 1500 cc)
\n20.00
\nGST Compensation Cess has not been notified as exempt (or rate reduced) by the Central Government, hence, it would continue to apply on penultimate export sale also.
\nTotal GST
\n20.10
\nEven though the government has accorded a great benefit for merchant exporters, they would be able to enjoy that benefit only if,
\n * The corresponding SGST notifications are issued immediately by the respective
\nState Governments; and
\n * The Central Government clarifies on the applicability of GST Compensation Cess on sales preceding an export sale.
\n2<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n