GST: Taxable territory stretched beyond (India)!!

Prajakta Ji
i don't subscribe to yours view at all.


What my understanding of the provision is:
Supplier = located in India
place of Supply = Outside India

this is Inter State Supply - Sec 7(5) of IGST
Inter-state – Sec 7 (5) of IGST

Sec 5 – charging section applicable (The levy and collection provisions under the IGST Act have been stipulated without any reference to taxable territory. )

But, then sec 1 will take it out of tax – and thus, it will become non-taxable supply (fortunately, definition of non-taxable supply does not contain any reference to non-taxability due to Sec 5 only)

please note that Sec 1 will not let Sec 5 to be applicable when place of supply is outside India.

thus, net position under GST will be same as it is in case of exciting ST law.

Summarily,
Supply outside India which is not qualifying as export
Taxability = Non taxable - Sec 1
Zero-rating benefit of Sec 16 = Not available (thus, ITC not available - taxes paid at input stage will form part of cost of such supply)


Let me clear further,
Supplier = Delhi
Place of Supply = J/K

this is Inter State Supply - Sec 7(5) of IGST
Inter-state – Sec 7 (1) / (3) of IGST

Sec 5 – charging section applicable (The levy and collection provisions under the IGST Act have been stipulated without any reference to taxable territory. )

But, then sec 1 will take it out of tax – and thus, it will become non-taxable supply (fortunately, definition of non-taxable supply does not contain any reference to non-taxability due to Sec 5 only)

please note that Sec 1 will not let Sec 5 to be applicable when place of supply is India excluding J&K.

Summarily,
Supply to J/K
Taxability = Non taxable - Sec 1
Zero-rating benefit of Sec 16 = Not available (thus, ITC not available - taxes paid at input stage will form part of cost of such supply)


Any further clarification is most welcome.


CA Dippak Gupta

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Dippak Gupta 22/05/2017