Meaning of Laws governing Goods and Services Tax

What are the Laws governing Goods and Services Tax

 

In this article, the information about Laws governing Goods and Services Tax is explained here.

Laws governing Goods and Services Tax:

Introduction

Since GST subsumed both indirect taxes of central government (excise duty, service tax, custom duty, etc.) and state governments (VAT, Luxury tax, etc.), both the government now depend on GST for their indirect tax revenue. Therefore the GST rate is composed of two rates, one of CGST and one of SGST. Therefore, while making an intra-state sale (i.e., sale within the same state), CGST collected will go to the central government and SGST collected will go the respective state government in which sale is made. UTGST is more or less similar to SGST. In a state, SGST will be applicable while in a union territory UTGST will be applicable.

CGST & SGST

When the supply of goods or services occurred within the state, then Central Government empowered to levy equal of portion of CGST & SGST on those supplies. And tax portion of the respective sates will be settled by the central government on timely basis.

IGST

When the supply of goods or services occurred across the states or union territories, then Central Government empowered to levy IGST on those supplies.

UGST

When the supply of goods or services occurred within the Union Territory, then Central Government empowered to levy equal of portion of CGST & UGST on those supplies. And tax portion of the respective sates will be settled by the central government on timely basis.

Availitybility of input tax credit

 A registered person cans eligible to avail the IGST portion of tax for payment of SGST or CGST or UGST. But Input tax credit portion of SGST or CGST or UGST can be utilised for payment of respective CGST or SGST or UGST and IGST.

The information provided here is about Laws governing Goods and Services Tax.  If you would you like to add more information about Laws governing Goods and Services Tax, share below your thoughts.

 

 


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