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
- 90% : 10% - up to Rs 1.5 Crore
- 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
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