PLACE OF SUPPLY UNDER GST

PLACE OF SUPPLY UNDER GST

Place of supply is very crucial in GST, as the application of the type of tax under GST, depends totally on the place of supply. POS helps in knowing whether the supply undertaken is inter-state or intra-state supply. In the case of intra-state supply, where the supplier and the recipient are in the same state or union territory, CGST+SGST/UTGST are applied on the supplies undertaken, while in the case of inter-state supply, where the supplier and recipient are in two different states or union territories, or even different countries, then IGST is levied. It is of greater importance the place of supply is determined properly, as the payment of tax under the wrong head, would not be rectified later on. In such a case, the taxpayer will have to pay the tax under the correct account and apply for refund of tax paid under the wrong head.

PROVISIONS ON PLACE OF SUPPLY

Determination of place of supply involves two components namely –

1. The location of the Supplier supplying the goods, services or both.
2. The location of the recipient receiving such services.

INTER STATE SUPPLY

As per the Section 7 of IGST Act, 2017, interstate supplies are defined as the following supplies –

S.NO.	TYPE OF SUPPLY	PROVISION
1.	Supply of goods or supply of services	Supply of goods, services or both, where the location of the supplier and the place of supply are in— Two different states. Two different union territories. A state and a union territory.
2.	Import of goods, services, or both	Supplies where the goods or services received from outside India, and have crossed the customs frontiers of India.
3.	Export supplies and sez	A.  Supply is made from India to any person outside India and the place of supply is outside India. B. Supply to or from a special economic zone developer or a special economic zone unit.

 

INTRA STATE SUPPLY

As per the Section 8 of IGST Act, 2017, intra state supplies are defined as the following supplies –

S.NO.	TYPE OF SUPPLY	TERMS FOR SUPPLY TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES AS INTRA-STATE SUPPLY
1.	Supply of goods or services	Supply of goods, services, or both, where the location of the supplier and place of supply are in the same state or same Union territory.
2.	Supply of goods, services, or both, not treated as inter-state supplies	Supplies other than the following supplies – A. Supply is made from India to any person outside India and the place of supply is outside India. B. Supply to or from a special economic zone developer or a special economic zone unit. C. Supplies where the goods or services received from outside India, and have crossed the customs frontiers of India. D. Supplies made to any tourist, while their visit to India.

It is to be noted that as per the Rule 46 (e) of CGST Act, where any supply is made to an unregistered recipient and such recipient does not provide the address for billing, then in such a case, the place of supply shall deem to be the location of the supplier, provided the value of supply is less than Rs 50,000.

EXAMPLE

Suppose the location of a Supplier ‘A’ is Delhi. And he makes the following supplies –

RECIPIENT	PLACE OF SUPPLY	NATURE OF SUPPLY
A person registered in Gurgaon	GURGAON	INTER-STATE SUPPLY
Unregistered person, but the address provided is of Noida	NOIDA	INTER-STATE SUPPLY
Unregistered person, the address was also not known and the supply if of rs 45000	DELHI	INTRA-STATE SUPPLY

PLACE OF SUPPLY OF GOODS

The place of supply in respect of supply of goods, have been defined under section 10 of IGST Act, 2017.

1. SUPPLY INVOLVES MOVEMENT OF GOODS

Under section 10(1)(a), such supplies include movement of goods, either by the Supplier, Recipient or Any Other Person.

In this case, place of supply shall be the location/place, where such goods were terminated.

2. SUPPLY MADE ON BEHALF OF OR DIRECTION OF A THIRD PERSON

Under section 10(1)(b), such supplies, include delivering of goods by the supplier, to any person, on the direction of a third person, who would be acting as an agent or on some other basis by way of transfer of title to the goods.

In this case, the place of supply shall be the location of such third person, as it will be deemed to be the recipient.

EXAMPLE

Suppose that A is a supplier, registered in Delhi and he supplies goods to B, registered in Punjab. However, the said supply was made on the direction of C, who is a registered person in Mumbai. Under this case, the place of supply will be –

LOCATION OF THE SUPPLIER	LOCATION OF THE RECIPIENT	LOCATION OF THIRD PERSON	PLACE OF SUPPLY	NATURE OF SUPPLY
DELHI	PUNJAB	MUMBAI	MUMBAI	INTER-STATE

 

3. SUPPLY WITHOUT MOVEMENT OF GOODS

Under section 10(1)(c), such supplies, include supply of goods, without any movement of goods

In such a case, the place of supply shall be the location at which the goods were delivered to the recipient.

EXAMPLE

Suppose, there is person B, who is registered in Delhi, and he purchases a factory from ‘A’ of Punjab. In the agreement of sale, the factory include all the plants and machinery and some furniture. Here, there is no movement of goods. Therefore, the place of supply shall be Punjab.

4. GOODS DIRECTLY ASSEMBLED AND INSTALLED

Under section 10(1)(d), such supplies include direct assembly of goods at the site of the recipient.

In this case, the place of supply shall be the place where the assembly or installation of the good has taken place.

 

EXAMPLE

Suppose, a registered dealer A of Delhi is required to install and assemble some parts at different sites of factory of ‘B’. the place of supply will be –

LOCATION OF SUPPLIER	REGISTERED LOCATION OF B	SITE OF INSTALLATION	PLACE OF SUPPLY	NATURE OF SUPPLY
DELHI	GURGAON	GURGAON	GURGAON	INTER-STATE
DELHI	GURGAON	DELHI	DELHI	INTRA-STATE
DELHI	GURGAON	PUNJAB	PUNJAB	INTER-STATE

 

5. GOODS PROVIDED ON BOARD

Under section 10(1)(e), such supplies involved, movement of goods by placing them on board, including vessel, aircraft, train or motor vehicle.

In this case, the place of supply shall be the location, where the goods placed in board.

EXAMPLE

LOCATION OF THE SUPPLIER	PLACE OF BOARDING THE GOODS	PLACE OF SUPPLY	NATURE
DELHI	NEW DELHI	DELHI	INTRA-STATE
DELHI	MUMBAI	MAHARASHTRA	INTER-STATE

PLACE OF SUPPLY OF GOODS, IMPORTED AND EXPORTED TO/FROM INDIA

As per section 11 of IGST Act, 2017, the following provisions be followed –

1. Where the goods are imported into India, from any place outside India, the place of supply shall be the location of the importer.
2. In case, goods are exported from India, the place of supply shall be the location of the recipient, outside India.

PLACE OF SUPPLY OF SERVICE

As per section 12 of IGST Act, 2017, the following provisions be considered –

SECTION	PARTICULARS	RECIPIENT IS REGISTERED	RECIPIENT IS UNREGISTERED
12 (2)(A)	Supply of service to the registered recipient	Location of the recipient
12 (2)(B)	Supply of services to unregistered person		Location of the recipient, if recorded, otherwise the location of the supplier.
12 (3)(A)	SERVICES IN RELATION TO ANY IMMOVABLE PROPERTY INCLUDING SERVICES PROVIDED BY – ARCHITECTS, INTERIOR DECORATORS, SURVEYORS, ENGINEERS, OTHER RELATED EXPERTS AND ESTATE AGENTS ETC.	LOCATION OF THE IMMOVABLE PROPERTY.
12 (3)(B)	SERVICES BY WAY OF LODGING ACCOMMODATION BY A HOTEL, INN, GUEST HOUSE, HOME STAY.	LOCATION OF THE IMMOVABLE PROPERTY OR BOAT OR VESSEL.
12 (3)(C)	SERVICES BY WAY OF ACCOMMODATION IN ANY IMMOVABLE PROPERTY FOR ORGANISING ANY FUNCTION.	THE LOCATION OF THE INTENDED IMMOVABLE PROPERTY.
12 (3)(D)	ANCILLIARY SERVICES TO SERVICES UNDER ABOVE 3 SUB SECTIONS.	THE LOCATION OF THE INTENDED IMMOVABLE PROPERTY.
HOWEVER, WHERE THE LOCATION OF THE IMMOVABLE PROPERTY IS OUTSIDE INDIA, THE PLACE OF SUPPLY SHALL BE THE LOCATION OF THE RECIPIENT, OUTSIDE INDIA.
12 (4)	SERVICES RELATED TO RESTAURANT AND CATERING SERVICES, FITNESS, BEAUTY PARLOUR, AND HEALTH TREATMENT.	LOCATION WHERE THE SERVICE WAS PERFORMED.
12 (5)	SERVICES RELATING TO TRAINING AND PERFORMANCE APPRAISAL.	LOCATION OF THE RECIPIENT	LOCATION WHERE THE SERVICE IS ACTUALLY PERFORMED.
12 (6)	SERVICE RELATED TO ADMISSION IN A CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC, EDUCATIONAL, ENTERTAINMENT EVENT OR AMUSEMENT PARK.	LOCATION WHERE THE EVENT IS HELD, OR THE PARK IS SITUATED.
12 (7)	SERVICES RELATED TO ORGANISATION OF A CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC, EDUCATIONAL OR ENTERTAINMENT EVENT, AND ALSO INCLUDE ANY ANCILLIARY SERVICE IN RELATION TO SUCH EVENTS.	LOCATION OF THE RECIPIENT.	THE LOCATION WHERE THE EVENT IS ACTUALLY HELD.
12 (8)	SERVICES RELATING TO TRANSPORTATION OF GOODS, ALSO BY MAIL OR COURIER	LOCATION OF THE RECIPIENT.	LOCATION WHERE THE GOODS ARE HANDED OVER FOR TRANSPORTATION
12 (9)	SERVICE RELATED TO TRANSPORTATION OF PASSENGERS	LOCATION OF THE RECIPIENT.	LOCATION WHERE THE PASSENGER TAKES UP THE CONVEYANCE.
12 (10)	SERVICE RELATED TO ONBOARDING OF CONVEYANCE, THROUGH VESSEL, AIRCRAFT, TRAIN OR MOTOR VEHICLE.	LOCATION OF SCHEDULED DEPARTURE POINT OF THE CONVEYANCE.
12 (11)	TELECOMMUNICATION SERVICES 1.      THROUGH FIXED LINE OF COMMUNICATION. 2.      TAKING UP OF POST-PAID MOBILE CONNECTION AND INTERNET SERVICES. 3.      PREPAID PLAN TAKEN THROUGH AN AGENT. 4.      IN ANY OTHER CASE.	1.      LOCATION OF FIXING SUCH LINE. 2.      LOCATION OF BILLING ADDRESS OF THE RECIPIENT. 3.      LOCATION OF THE AGENT OR THE PAYMENT OF THE PLAN. 4.      LOCATION OF RECIPIENT IF PROVIDED IN THE RECORDS, OTHERWISE, THE LOCATION OF SUPPLIER.
12 (12)	BANKING AND FINANCIAL SERVICES	LOCATION OF RECIPIENT IF PROVIDED IN THE RECORDS, OTHERWISE, LOCATION OF SUPPLIER.
12 (13)	INSURANCE SERVICES	LOCATION OF RECIPIENT. .	LOCATION OF RECIPIENT AS PER THE RECORDS MAINTAINED.
12 (14)	LOCATION IN CASE OF ANY ADVERTOSEMENT BY THE GOVERNMENT, OR ANY OTHER AUTHORITY, SHALL BE THE STATE IN WHICH SUCH ADVERTISEMENT IS PUBLISHED OR PRESENTED. IN CASE OF MULTIPLE STATES, THE PLACE OF SUPPLY BE APPORTIONED, AS PER THE PORTION APPLICABLE TO EACH STATE.

PLACE OF SUPPLY OF SERVICE, WHERE THE SUPPLIER OR THE RECIPIENT IS LOCATED OUTSIDE INDIA

As per section 13 of IGST Act, 2017, the following provisions be considered

SECTION	PARTICULARS	RECIPIENT IS REGISTERED	RECIPIENT IS UNREGISTERED
13 (2)	GENERAL SERVICES	LOCATION OF RECIPIENT.	LOCATION OF THE SUPPLIER.
13 (3)(A)	SUPPLY OF GOODS OR SERVICE OUTSIDE INDIA.	LOCATION WHERE THE SERVICE IS ACTUALLY PERFOEMED. LOCATION WHERE GOODS ARE SITUATED BEFORE SUPPLY.
13 (4)	SERVICE IN RELATION OF IMMOVABLE PROPERTY.	LOCATION OF THE IMMOVABLE PROPERTY.
13 (5)	SERVICE RELATED TO ORGANIZATION OF AN EVENT.	LOCATION WHERE THE EVENT IS HELD.
13 (6)	SERVICES SUPPLIED TO DIFFERENT LOCATIONS, INCLUDING LOCATION IN THE TAXABLE TERRITORY	LOCATION OF SERVICE IN THE TAXABLE TERRITORY.
13 (7)	SERVICES SUPPLIED TO DIFFERENT LOCATIONS, INCLUDING MORE THAN ONE STATE OR UNION TERRITORY.	LOCATION OF SERVICE IN EACH STATE/UT, IN PROPORTION OF THEIR VALUE.
13    (8)	1.      BANKING AND FINANCIAL SERVICES. 2.      INTERMEDIARY SERVICES. 3.      HIRING SERVICES BY MEANS OF TRANSPORT,	LOCATION OF SUPPLIER OF SERVICE.
13 (9)	SERVICES RELATING TO TRANSPORTATION OF GOODS, OTHER THAN BY MAIL OR COURIER.	LOCATION OF THE DESTINATION OG GOODS.
13 (10)	PASSENGER TRANSPORTATION SERVICES.	LOCATION OF EMBARKMENT OF CONVEYANCE, FOR SEPARATE JOURNEY.
13 (11)	SERVICES RELATED TO ON BOARD OF A CONVEYANCE	LOCATION OF FIRST SCHEDULED POINT OF DEPARTURE OF THE CONVEYANCE.
13 (12)	SERVICES RELATED TO ONLINE INFORMATION AND DATABASE ACCESS AND RETRIVAL OF DATA.	LOCATION OF RECIPIENT
THE RECIPIENT SHALL DEEM TO BE IN INDIAN TERRITORY, WHERE ANY TWO CONDITIONS, OUT THE FOLLOWING PRESCRIBED CONDITIONS, ARE SATISFIED – 1.      THE LOCATION OF ADDRESS PRESENTED BY THE RECIPIENT THROUGH INTERNET IS IN INDIA. 2.      ANY PAYMENT MADE FOR SUCH SERVICE, INVOLVES CREDIT CARD OR DEBIT CARD ISSUED IN INDIA. 3.      THE BILLING ADDRESS PROVIDED BY THE RECIPIENT AT THE TIME OF PLACING ORDER FOR SUCH SERVICE IS IN INDIA. 4.      THE IP ADDRESS OF THE COMPUTER NETWORK USED BY THE RECIPIENT FOR AVAILING SUCH SERVICE IS IN INDIA. 5.      THE BANK FROM WHICH THE RECIPIENT MADE THE PAYMENT IS MAINTAINED IS IN INDIA. 6.      COUNTRY CODE OF THE SUBSCRIBER IDENTITY MODULE CARD USED BY THE RECIPIENT IS OF INDIA. 7.      THE LOCATION OF THE LAND LINE USED BY THE RECIPIENT FOR GETTING THE SERVICE IS IN INDIA.

PLACE OF SUPPLIES MADE IN TERRITORIAL WATERS

As per section 9 of IGST Act, 2017, the place of supply, where the location of the supplier is in the territorial waters, shall be the location of the supplier. While in case, recipient of such supply is in territorial water, the place of supply shall be the state/UT, which is near to the point of supply.

FAQ’S ON BASIC OF GST

Q. : what’s GST? what’s GSTR Filings?

GST or Goods & Service Tax is that the Indirect style of tax that has replaced multiple taxes including the VAT System in India, since its implementation on July 1st, 2017. The GST Act was passed within the Parliament on March 29th, 2017. GST is taken into account to be a ‘comprehensive, multi-staged & destination-based system of taxation.

Q. what’s GST? How does it work?

Answer: GST is one tax for the full nation, which is able to make India one unified international organisation.

GST could be a tax on the provision of products and services, right from the manufacturer to the patron. Credits of input taxes paid at each stage are going to be available within the subsequent stage valuable addition, which makes GST essentially a tax only on value addition at each stage. the ultimate consumer will thus bear only the GST charged by the last dealer within the supply chain, with set-off benefits in the slightest degree the previous stages.

Q. :What are the advantages of GST?

The benefits of GST are often summarized as under:

1. For business and industry

• Ease in complying with the Provisions – with the help of a strongand a comprehensive IT system the businesses are at an advantageous position under the GST regime in India. Thus, all the services related to taxpayers in the form of registrations, returns, payments, etc. shall be available to them online, thereby making the compliance easy and transparent.
• Uniformity of tax rates and structures: GST will make sure thattax rates and structures are common across the country, thereby increasing certainty and easy doing business. In other words, GST would make doing business within the country tax neutral, regardless of the selection of place of doing business.
• Preventing Tax on Tax – GST provides a system of seamless ITC availment throughout the value-chain, and also across boundaries of States, would make sure thatthere’s minimal cascading of taxes. this is able to reduce hidden costs of doing business.
• Increased Healthy Competitiveness: with the reduction in transaction costs of trade and business, the same would eventually causean improved competitiveness for the trade and industry.
• Greater Benefits to manufacturers and exporters: Subsuming the major Central and State taxes under GST, complete and comprehensive set-off of input goods and services and phasing out of Central nuisance tax(CST) would scale back the price of locally manufactured goods and services. this can increase the competitiveness of Indian goods and services within the international market and provides boost to Indian exports. The uniformity in tax rates and procedures across the country will go a protracted way in reducing the compliance cost.

2. For Central and State Governments

• Simple and simpleto administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a sturdy end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied to date.
• Better controls on leakage: GST will end inbetter tax compliance because of a strong IT infrastructure. because of the seamless transfer of input reduction from one stage to a different within the chain useful addition, there’s an in-built mechanism within the design of GST that will incentivize tax compliance by traders.
• Higher revenue efficiency: GST is predictedto decrease the value of collection of tax revenues of the govt., and can therefore, result in higher revenue efficiency. For the buyer
• Single and transparent tax proportionate to the worthof products and services: because of multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages important addition, the price of most goods and services within the country today are laden with many hidden taxes. Under GST, there would be only 1 tax from the manufacturer to the patron, resulting in transparency of taxes paid to the ultimate
• Reduction in Tax Burden: With theefficiency gains and prevention of leakages, some of the tax burden in relation of most commodities will come down, which is able to benefit consumers.

Q. : What all taxes at the Centre and State level have been subsumed under GST?

At the Central level, the following taxes have been subsumed –

1. Central Excise Duty,
2. Additional Excise Duty,
3. Service Tax,
4. Additional dutycommonly called duty, and
5. Special Additional Duty of Customs.

At the State level, the following taxes have been subsumed –

1. Subsuming of State Value Added Tax/Sales Tax,
2. Entertainment Tax (other than the tax levied by the local bodies), Central excise tax(levied by the Centre and picked up by the States),
3. Octroi and Entry tax,
4. Purchase Tax,
5. Luxury tax, and
6. Taxes on lottery, betting and gambling.

Q. : What are the key chronological events that have led to the introduction of GST?

Answer: GST is being introduced within the country after a 13-year long journey since it absolutely was first discussed within the report of the Kelkar Task Force on indirect taxes. a short chronology outlining the foremost milestones on the proposal for introduction of GST in India is as follows:

8. In 2003, the Kelkar Task Force on taxationhad suggested a comprehensive Goods and Services Tax (GST) supported VAT principle.
9. A proposal was submitted for introduction of a National level Goods and Services Tax (GST) latest by April 1, 2010 and the same was presented in the Budget Speech of the year2006-07.
10. Since certain reform/ restructuring was involved, and that too not only in the indirect taxes levied by the Centre but also by the States, thus, the responsibility of preparing a Design and Road Map in respect of the implementation of GST was assigned to the then Empowered Committee of State Finance Ministers (EC).
11. supportedinputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.
12. so asto require the GST related work further, a Joint working party consisting of officers from Central moreover as government was constituted in September, 2009.
13. Thus, in order to amend the Constitution for making it able to introduce GST, the Constitution (115th Amendment) Bill was introduced within theLok Sabha in March 2011. As per the prescribed procedure, the Bill was named the committee on Finance of the Parliament for examination and report.
14. This Committee did an in-depthdiscussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. supported this Report, the EC recommended certain changes within the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.
15. The Empowered Committee within theBhubaneswar meeting also decided to constitute three committees of officers to debate and report on various aspects of GST as follows:

• • Committee on Place of Supply Rules and Revenue Neutral Rates;
  • Committee on dual control, threshold and exemptions;
  • Committee on IGST and GST on imports.

14. In August 2013, the Parliamentary committeesubmitted their report to the Lok Sabha. The recommendations of the Empowered Committee and also the recommendations of the Parliamentary committee were examined within the Ministry in consultation with the Legislative Department. Most of the recommendations made by the Empowered Committee and therefore the Parliamentary committee were accepted and therefore the draft Amendment Bill was suitably revised
15. the ultimate draft Constitutional Amendment Bill incorporating the above stated changes were sent to the Empowered Committee for consideration in September 2013.
16. The EC another timemade certain recommendations on the Bill after its meeting in Shillong in November 2013. Certain recommendations, as submitted by the Empowered Committee, were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.
17. The 115th Constitutional (Amendment) Bill, 2011, was introduced for the implementation of the GST, the same was placed in theLok Sabha in March.
18. In June 2014, the said Constitution Amendment Bill was served to the Empowered Committee for their approval, after the formation of the new Government.
19. supported a broad consensus reached with the Empowered Committee on the contours of the Bill, the cupboard on 17.12.2014 approved the proposal for introduction of a Bill within the Parliament for amending the Constitution of India to facilitate the introduction of products and Services Tax (GST) within the The Bill was introduced within the Lok Sabha on 19.12.2014, and was lapsed the Lok Sabha on 06.05.2015. it had been then mentioned the committee of Rajya Sabha, which submitted its report on 22.07.2015.

Q. :How would GST be administered in India?

Answer: Keeping in mind the federal structure of India, there’ll be two components of GST – Central GST (CGST) and State GST (SGST). Under the GST Act, the Centre and States governments, both can simultaneously levy GST. Tax is levied on every supply of products and services. The Central Government shall levy and collect Central Goods and Services Tax (CGST), while the State Governments shall levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input decrease of CGST would be available for discharging the CGST liability on the output at each stage.

Similarly, the credit in respect of SGST paid on inputs shall be allowed for setting off against the SGST liability on output only. No cross utilization of credit would be permitted.

Q. : How would a selected transaction of products and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?

Answer: Both CGST and SGST shall be levied simultaneously on each and every transaction of supply of goods and services provided the same is not a supply of exempted goods and services, goods which are outside the purview of GST Act and also the supplies made of amount within the prescribed threshold limits. Further, both would be levied on the identical price or value unlike State VAT which is levied on the worth of the products inclusive of Central Excise.

does the cross utilization of credits between goods and services allowed under GST Act?

Answer: Cross utilization of credit of CGST shall be allowed only against IGST. Similarly, the cross utilization of SGST shall be allowed only against IGST. However, the cross utilization of CGST and SGST shall not be allowed.

Q.: How are going to beInter-State Transactions of productsand Services be taxed under GST in terms of IGST method?

Answer: where the supply involves inter-State transactions, the Centre shall levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of products and services under Article 269A (1) of the Constitution. The IGST would roughly be up to CGST plus SGST. The IGST mechanism has been designed to confirm seamless flow of input diminution from one State to a different. The seller undertaking such inter-state supplies shall be liable to pay IGST, to the Central Government after making adjustment for credit of IGST, CGST and SGST on such purchases (in that order). The exporting State will transfer to the Centre the credit of SGST employed in payment of IGST. The importing dealer will claim credit of IGST while discharging his output liabilities (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST utilized in payment of SGST. Since GST may be a destination-based tax, all SGST on the ultimate product will ordinarily accrue to the consuming State.

Q.: How will or not it’sused for the implementation of GST?

Answer: For the successful implementation of GST in India, the Central and State Governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company for production of shared IT infrastructure and services as to the Central and State Governments, along with the tax payers and other stakeholders. The key objectives of GSTN are to produce a typical and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments.

GSTN is functioning on developing a state-of-the-art comprehensive IT infrastructure including the common GST portal providing frontend services of registration, returns and payments to any or all taxpayers, in addition because the backend IT modules surely States that include processing of returns, registrations, audits, assessments, appeals, etc. All States, accounting authorities, RBI and banks, are preparing their IT infrastructure for the administration of GST.

There would no manual filing of returns. All taxes may also be paid online. All mis-matched returns will be auto-generated by the portal, and no manual interventions will be required. Most returns would be self-assessed.