PRESENTATION ONINTEGRATED GOODS AND SERVICES TAX &

COMPENSATION DRAFT LAW

BY: PARTH SINGHALTAXPERT PROFESSIONALS PRIVATE LIMITED

INDEX TO PRESENTATION

• Introduction

• Integrated Goods and Services Tax [IGST]

• Supply of goods and services

• Place of supply of Goods and services

• Input Tax Credit

• Zero Rated Goods

INTRODUCTION

• Under the proposed GST Draft Bill, all intra-state supplies

of Goods and Services are chargeable to SGST and CGST

which are equal in rate.

• Inter-state sales are chargeable to IGST which shall be

equal to the aggregate rate of CGST and SGST.

• Thus under GST regime, sales all over India would become

tax neutral, i.e. No difference on account of difference in

tax Rates.

Supplies of Goods and Services

Intra State

CGST SGST

Inter State

IGST

INTEGRATED GOODS AND SERVICES TAX [IGST]

• A revised draft of Integrated Goods and Services tax (IGST) has been released by the

central government on 28 November 2016.

• The provisions of the Bill will apply to whole of India.

• The date of coming in will be notified by the Central Government by means of a

notification in the Official Gazette.

Charging Section : Section 5 :

“ There shall be levied a tax called Integrated Goods and Services Tax on all supplies of goods

and /or services made in the course of inter state trade or commence on the value determined

under section 15 of CGST Act, 2016 and at such rate as may be notified by the Central

Government”.

SUPPLY OF GOODS IN COURSE OF INTER STATE TRADE

IGST on Goods

Location of Supplier and Place of Supply in different States

Supply in the course of import till they cross the

Customs Frontiers of India

Supply in the course of Export (supplier located in India, place of Supply

outside India)

SUPPLY OF SERVICESIN COURSE OF INTER STATE TRADE

IGST on Services

Location of Supplier and place of Supply of Service is in different

states

Services in the Course of Import.

Export of services wherein the recipient of Services is located

in non-taxable territory.

COMMON PROVISIONS

• Any supplies of Goods/services to/from units located in SEZs or developers of SEZs shall

be treated as inter-state supply for the purpose of GST.

• Any supplies of Goods/services in taxable territory not being intra-state sale and not

covered elsewhere, shall be considered as inter-state sale.

PLACE OF SUPPLY

Pla

ce o

f Su

pply Goods

Location of Goods

Location of recipient

Services

Location of recipient

Location of supplier

Actual Place of Performance

PLACE OF SUPPLY IN CASE OF GOODS

Location of Goods at the

time of Delivery

Supply involves movement of Goods

Supply does not involve movement

Supply involves installation/ assembly – Location of such

installation/assembly

Place where Goods are

taken on board

Supply on board a

conveyance (such as vessel or aircraft)

Principal place of Business of

Recipient

Goods are delivered to some other person, on the direction of third

person, either by way of transfer of documents of

title or otherwise.

Such third person shall be the deemed resident.

PLACE OF SUPPLY IN CASE OF SERVICES - GENERAL

Place of Supply of Services

Registered person Location of recipient

Unregistered Person

Address Available on record – Location of

Recipient

Address Not available on record – Location of

Supplier

PLACE OF SUPPLY IN CASE OF SERVICES - SPECIFIC

Services related to immovable property- Location of the property or where it is intended to be located

Admission to amusement parks, exhibitions etc –Location of such event or park

Services on board a conveyance – First Point of Departure of such conveyance

Mail, courier services – Place where goods are handed over to the carrier. (unregistered person)

Passenger transportation –Place where recipient embarks on the journey (unregistered person)

PLACE OF SUPPLY IN CASE OF SERVICES - TELECOM SERVICES

• For Post paid services – Billing address of the recipient.

• For prepaid services, place of business of the supplier from where the voucher is

purchased.

• In other cases, address of recipient as per records of the supplier of service.

• In case of Fixed Line/D2H Television place where the fixed line/antennae/cable

connection etc is installed for provided for providing the services.

PLACE OF SUPPLY ONLINE INFORMATION DATABASE ACCESS AND RETRIEVAL SERVICES

• With respect to OIDARS place of provision of Service shall be the location of recipient

of service.

• Person located in the non-taxable territory (supplier) shall be liable to pay IGST.

• Any person located in taxable territory representing such person shall take registration

and pay IGST on behalf of such person.

• If such person does not have a physical presence or representative in taxable territory, he

may appoint a person in the taxable for the purpose of paying IGST.

INPUT TAX CREDIT

Input Credit of IGST

Adjusted against liability of IGST

Adjusted against liability of SGST or CGS if credit

is still left

Input credit of SGST

Adjusted against output SGST

Adjusted against liability of IGST

Input credit of CGST

Adjusted against output

liability of CGST

Adjusted against output

liability of IGST

ZERO RATED SUPPLIES

• As per section 16, Export of Services/Goods and supply of Goods/Services shall be zero

rated i.e. chargeable to zero rate of tax.

• The registered person making the supply shall be eligible to claim refund in respect of the

input tax credit.

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