GstTak

  INTRODUCTION:- Many Businessman come across the transaction where he received the Intra state supply and paid GST (i.e. CGST & SGST) in a state where he does not have GST Registration.   Now Question is raised that whether ITC of such GST paid (i.e. CGST & SGST) in other state can be used for pay output liability in a state where is has a registration?   E.g.:- A businessmen registered in Maharashtra would book a hotel in Gujarat for attending a business meeting and pay CGST and Gujarat SGST on the said booking. Such businessmen would also ensure that the hotel tax invoice carries his Maharashtra address as well as GSTIN as per the statutory requirement even though the tax charged is not IGST.     ANALYSIS:- GST is destination based tax (i.e. GST is charged in the state where supplies are consumed), So we have to look two aspect of GST, 1)       Levy of Tax which is based on taxable event called as Supply. 2)       Availment of ITC. Levy of Tax:- In case of in

In this Article we will discuss about the Eight Terms of Supply. First we will understand the definition of Goods. Goods :- As per the Section 2(52) of CGST Act, 2017 “goods” means every kind of movable property other than money and  securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.   Analysis of Definition of Goods:- 1)       All Kind of Movable Property (i.e. Immovable property is not covered) 2)       EXCLUDE:- Money & Securities. 3)       INCLUDE:- Actionable Claim & Crops & Grass attached to the land.     Now Understand Actionable Claim. As per Section 3 of the Transfer of Property Act, 1882. Actionable Claim is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial interest in movable property not in possession

  INTRODUCTION:- Input tax credit plays a very important role in GST by avoiding cascading effect of taxation. The  ITC  available in the electronic credit ledger could always be fully utilised for discharging the output tax liability. The new Rule 86B has limited the use of ITC balance for paying its output tax liability. Once ITC availed as per Section 16 of CGST Act, 2017 (Rule 36) is credited to electronic credit ledger. Once ITC credited in electronic credit ledger it can be used for payment of liabilities towards outward supply and as per the provisions contained in Section 49 of CGST Act, 2017. However Rule 86B restrict utilisation of ITC. That means Rule 86B is overrides all other rules. Introduction of Rule 86B will be no impact on micro and small business as these rule is applicable only if the turnover is more than Rs. 50,00,000/- in a month (Excluding ZERO rated Sales & EXEMPTED Sales). Reason behind this is to control the issue of fake invoice to use the fake IT