Revenue Sharing Of Igst

Revenue sharing is taxable under gst.

Revenue sharing of igst. Integrated goods and service tax or igst is a combination of the state s share sgst and the central government s share cgst of the tax. Section 8 of the gst act mentions that taxes are levied on all intrastate supplies of goods and or services. The proposed goods and services tax bill will mean that states like tamil nadu which have manufacturing industries will lose out on own tax revenue collections. Further the cgst collected by the central government as well as the union s share of igst collected will be devolved to the states as per the provisions of.

Both parties together enter into a sale document with the buyer. The revenue out of igst is shared by state government and central government as per the rates fixed by the authorities. There are two important points you need to remember regrading igst. In service tax regime it was classified under the category of bas and as per para no 11 of board s circular dated 13 12 11 appended below leviability of service tax on revenue sharing was determined on the nature of transaction.

According to gst rules which are clear on the matter igst has to be shared. How are the gst rates fixed. For example if goods are moved from tamil nadu to kerala igst is levied on such goods. Integrated goods and service tax.

However the rate should not surpass 14 each. Board s circular and different case laws are given below for arriving at correct decision. Igst falls under integrated goods and service tax act 2016. Instead of focussing only on indirect taxation reform the centre must also consider sharing direct tax administration with states which has been the practice in other federal arrangements internationally.

State governments will come to an agreement that sees them combine their levies in an appropriate proportion aimed at revenue sharing between them. It is the buyer who is the ultimate receiver of the service and he pays gst as per the notifications issued from time to time. The importing state gets the final tax revenue. Gst applicable revenue sharing agreement income tax goods and services tax gst service tax central excise custom wealth tax foreign exchange management fema.

In a revenue sharing agreement the land owner supplies land and the developer contributes in the form of development activity. The proceeds of igst will be apportioned between the states and the centre under the proposed article 269a as provided by parliament by law on the recommendations of the gst council. Things to keep in mind about igst.