Wednesday, March 8, 2017

framework meaning and structure of gst


What is GST?
  • GST is a common tax on both goods and services
  • More commonly known as VAT in UK and few other countries
  • Indian federal structure will make Indian GST regime unique and challenging for Indian companies vis-à-vis global GST/VAT regime
  • Both State and Centre will exercise control on assessee except for few cases
  1. 90% : 10% - up to Rs 1.5 Crore
  2. 50% : 50% Above Rs 1.5 Crore
  • GST will be destination based tax


Existing vs Proposed Framework



Proposed GST Structure



Availment and Utilization of ITC

Availment of ITC:
  • Liberal Tax Credit regime under GST
  • Available to every registered taxable person for purchases made from another registered dealer or imports
  • Credit is available for Inputs, Input services and capital goods
  • Amount to be credited in electronic credit ledger
  • No tax credit without online reconciliation



0 comments:

Post a Comment

Copyright © 2015 Accounting & Taxation All Right Reserved
Subscribe by Email Get Free Updates
Don't Forget To Join US Our Community
×
blogger