ASMT-10 & DRC-01 in Mylapore

In pursuance of any assessment or adjudication proceedings instituted, after the appointed day, under the existing law, an amount of tax, interest, fine or penalty becomes refundable. Shall such amount be refundable under the GST law?

An Indian company provides services of referring supplier of material in India to foreign client and then the foreign client negotiates with the Indians suppliers so referred. In case foreign company transacts with the referred supplier, Indian company gets commission in foreign exchange. Goods are supplied outside India by Indian supplier. Whether such transaction (supply of service) tantamount to export of service?

GST How is different from the previous indirect tax system? Simplifies the indirect tax system With regard to the system of indirect taxes, before the passage of the GST Bill, the Constitution of India clearly demarcated the taxation powers of the government at different levels– the Centre, States and Local Bodies. Thus, the Centre had the power to levy taxes on manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.), imports and services, but not on sale of goods. The States on the other hand had the right to levy taxes on sale of goods but not on services or imports. For inter-state movement of goods there was Central Sales Tax, which was levied by the Centre but the revenue was collected by the State from where the goods were being supplied. In addition to these there were a number of other taxes that were levied. The tax rates also varied from state to state. This division of taxes had given rise to a complex maze of taxes. The complexity of taxes, in turn, made tax compliance harder for tax payers as well as provided opportunities for tax evasion. GST, by bringing almost all Centre and State level taxes and levies on various goods and services, under one umbrella, into a single tax, has the potential to make the taxation system simpler. So, instead of different kinds of taxes levied depending on whether a good is at the stage of manufacture or distribution, now only GST will be levied at all stages. 7 GST How is different from the previous indirect tax system? Reduces ‘cascading effect of taxes’ The large number of taxes also meant that a product was taxed several times beginning from the stage of production to the final sale of the good. So, taking the example of a bar of soap, first Central Excise Duty was levied at the factory gate, then sales tax levied when the bar of soap moved from manufactures to wholesalers, then again State VAT and some other taxes when it reached the retail shop. Thus, at every stage of the supply chain, some tax or the other was levied, leading to “cascading” of Value added is the taxes, i.e. tax levied on the price of a product include difference between the the taxes paid in earlier stages. The cascading of sale price of a firm's taxes in turn added to the cost of products. product and the cost of raw materials consumed To reduce the problem of cascading of taxes, the in production. Value Added Tax (VAT) was introduced both at the Or, price of finished level of the Centre and States at different points of product (100) - cost of time. The idea behind the VAT is that it is a tax levied raw material (50) = Value only on the 'value added' at each of stage of a supply added (50). chain with the provision to set-off taxes paid on inputs. To ensure that only the value added at each stage of the supply chain is taxed, the mechanism of Input Tax Credits (ITC) was brought in, by which taxes already paid on inputs could be deducted from the taxes to be paid on the price of the output. However, a major problem with VAT was that the provision of setting-off taxes was not available across the entire supply chain. Thus, for example, sellers could claim ITC only against State VAT paid 8 GST How is different from the previous indirect tax system? on previous purchases, but not against Central The cost of inputs or raw Excise Duty or Service Tax already embedded in materials used in the the product. This meant that Central VAT process of production/ (CENVAT) on certain commodities remained supply includes the taxes included in the value of goods taxed under State paid by the supplier of the VAT. Because the same set of goods was being raw material. The system taxed repeatedly – once by the Centre and then of Input Tax Credit (ITC) by the State - it did not fully remove the ensures that taxes already cascading burden of taxes. paid on inputs can be GST is also a tax like the VAT, with the difference deducted from the taxes to be paid on the price of that under GST the mechanism of ITC will be the output. In short, the available at every stage of the supply chain ITC means that when beginning from production to final retail sales of paying tax on the output, both goods and services. Thus, unlike earlier the supplier can subtract whereby ITC for Central VAT was not allowed or set-off the taxes against State VAT, GST removes such already paid on inputs. restrictions and allows for seamless flow of ITC across the entire value chain. GST, therefore, with its system of comprehensive and continuous mechanism of tax credits can significantly reduce the problem of 'cascading' of taxes”. 9 Q 3 Why did India adopt GST?

Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN start using provisional GSTIN till new one is issued?

What are the expenditure I can claim under GST? Will I get credit of GST under ITC for capital expenditure like cars or real estate construction cost for office or factory purposes?

When can the proper officer issue summons under CGST Act?