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

Posted by Accounting & Taxation at 11:15 PM

Labels: GST