CGST and IGST
We are passing bills of contractors . We give tender advt through an agency located in Chennai. But the advt is given in various langugages in different journals in different States. For example our advt is published in a Kannada newspaper which is not published here.
From CGST Central Govt has a major share ( I understand) and a nominal amount goes to State (SGST). Where the services are passed on to different States or locations the booty is share by Centre with those States. So I think only IGST should be levied in the above case. But some people opine that if both the service giver and receiver are in the same place or State it could be only CGST and SGST irrespective of the places of service
I am confused. Can anybody give me solution?
v guhan more
From CGST Central Govt has a major share ( I understand) and a nominal amount goes to State (SGST). Where the services are passed on to different States or locations the booty is share by Centre with those States. So I think only IGST should be levied in the above case. But some people opine that if both the service giver and receiver are in the same place or State it could be only CGST and SGST irrespective of the places of service
I am confused. Can anybody give me solution?
v guhan more
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OFFHAND (to share own instan thoughts but with no precxise possible solution in mind): On the facts briefly supplied, as read and understood, the querist is engaged in the business of 'Advertising' . In terms of section 194C of the IT Act, on payment to any resident (the contractor) for carrying out any work ( which as per the Explanation under that section - see cl. (iv) (a) - includes 'advertising) the payer has to deduct at source. In one's view, even by implication, the payee will have to account for and pay income-tax. The basic point of grave doubt is whether at all, also GST could be justifiably levied on the payee. For, if so levied, that will tantamount to a 'double taxation' of the payee's receipts / aggregate turover. As regards ITC made a mentoin of, to one's limited knowledge and underswtanding, the concept of credit envisages and will be available provided GST is liable to be paid/ actually both by the suplier (of input) and suplier of output. The points raised above, being prima facie moot points will, if so considered worth going into, require consultation with a reliable GST cum IT law Expert , in field practice, for his eminent opinion and proper guidance. courtesy more
Aug 01
Yes. You are fully confused. GST is to billed at the point of invoice. GST authorities divides the GST collected equally between Centre & State for which you need not have to put in your mind. Next comes when goods are moved from one place to other, there comes Input Tax Credit (ITC) etc. Further value addition / billing will follow the subsequent product GST rates. more
Aug 01
