4 Revenue gain for the Centre and the States due to widening of the tax base

4 revenue gain for the centre and the states due to

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4. Revenue gain for the Centre and the States due to widening of the tax base, increase in trade volumes and improved tax compliance. 5. Would be easier to administer because of its transparent character. When a person is liable to pay GST? Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the turnover threshold of Rs.20 lakhs (Rs. 10 lakhs for NE & Special Category States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit. The CGST / SGST is payable on all intra-State supply of goods and/or services and IGST is payable on all inter- State supply of goods and/or services Benefits available to small tax payers under the GST regime Following are the benefits available to the small tax payers:- Tax payers with an aggregate turnover in a financial year up to ( Rs.20 lakhs & Rs.1 0 Lakhs for NE and special category states ) would be exempt from tax. Further, a person whose aggregate turnover in the preceding financial year is less than Rs.50 Lakhs can opt for a simplified composition scheme where tax will payable at a concessional rate on the turnover in a state. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover in a state during the year without the benefit of ITC. Concept of Anti-Profiteering measure Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. An authority may be constituted by the government to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. 30
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Concepts of composite supply and mixed supply Composite Supply is a supply consisting of two or more services or both or any combination thereof, which are bundled in natural course and are supplied in conjunction with each other in the ordinary course of business and where one of which is a principal supply. For example, when a consumer buys a television set and he also gets warranty and a maintenance contract with the TV, this supply is a composite supply. In this example, supply of TV is the principal supply, warranty and maintenance service are ancillary . Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately. For example, a shopkeeper selling storage water bottles along with refrigerator. Bottles and the refrigerator can easily be priced and sold separately . Treatment of composite supply and mixed supply under GST - Composite supply shall be treated as supply of the principal supply.
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  • Fall '17
  • Mahvish ali

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