The Integrated Goods and Services Tax Bill, 2017 (IGST)

Key highlights of bill:-

Ø The bill introduced in Lok Sabha on March 27,2017.

Ø Applicability :

The IGST will levied by centre on

(a)   inter-state supply of goods and services,

(b)  imports and exports,

(c)   supplies to and from special economic zones. 

(d)  on any supply which will not fall under the Central and State GST (CGST and SGST).

Supply includes sales, transfer, exchange, and lease made for a consideration to further a business.

Ø Tax rates :

IGST will be levied at a rate recommended by the GST Council.  The tax rate will be capped at 40%.

Ø Exemption from IGST:

Certain goods and services may be exempted by centre from the preview of IGST based on the recommendation of GST Council.

Ø Place of supply of goods:

		Place of supply
1.	In case of Good has been physically moved.	The final destination of good.
2.	In other cases.	Where the goods received by the recipient.

Ø Place of supply of services:

Place of supply of service will depending upon the nature of service.

In case of services provided in relation to an immovable property, place of service will be the location at which the immovable property is located or intended to be located.( for example services provided by architect, interior decorators, surveyors, engineers, etc.)

Supply of services such as catering, sporting events, transportation of goods, advertisement, telecommunications, among others, specific provisions for determination of place of service have also been specified under IGST.

Ø Input Tax Credit :

Every taxpayer while paying taxes on output may take credit for taxes paid earlier by the supplier on inputs.

However, this will not be applicable on supplies related to:

(a)              motor vehicles when used for personal consumption,

(b)             supply of food, health services, etc. unless they are further used to make a supply.

Ø Application of CGST provisions :

In relation to registration, valuation, time of supply of goods, returns, refunds, prosecution, appeals the provisions of CGST will be applicable under the IGST Act.

The Integrated Goods and Services Tax Bill, 2017.