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Overview of GST implementation

Posted @ March 8, 2017, 6:42 am under (GST & TDS Returns)

Brief overview of GST implementation in India

Features of GST Model Adopted by India

·         Concurrent Dual GST

·         Destination based Consumption Tax


Reason for shifting to GST

·         Remove cascading effect of double taxation

·         Allow cross ITC on Goods and services


Threshold Limit

·         By and large Rs. 20 Lakh

·         No Limit for Interstate sale , Composition scheme, Reverse Charge, NRI, TDS and E com. business




1.      Unified Market across India

2.      Remove double taxation

3.      Seamless flow of tax input Credits

4.      Complex issues such as division of works contracts resolved

5.      Increase in threshold limit for registration

6.      Clarity on valuation and ITC

7.      Tax limited to value addition

8.      Refund Mechanism for exporters




1.      Difficult to determine actual jurisdiction – Place of supply and time of supply.

2.      Increase in tax rates for service sector

3.      No Centralised Registration

4.      No Abatements

5.      Large number of Procedural and documentation compliances. 3-4 Monthly Returns and 1 Annual Return

6.      Internal transfer (within branches or units) to attract GST such as Audit and accounting functions

7.     Services by employer to employee without consideration are taxable.

8.      If no Payment to Vendor ag. Invoice – Otherwise ITC reversed with interest and penalty.

9.      Stringent penalty Provisions

10.  Matching concept – No credit until proper return filed by supplier

11.  No ITC available against Expenses on Employees:
Food and Beverages
Club Membership
Rent a Cab
Health Insurance
Travel Benefits

12.  Interest and late payment Penalty part of Consideration for GST.

13.  Outside GST – Electricity tax, Petroleum and Alcohol.

14.  Stamp Duty to Continue





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