Sharing of gst revenue
This query is : Open
08 May 2018
Sir/Ma'am,
Whether supplier state or Recipient state receives the GST revenue in case of Interstate supply. I knew that 50% will be taken by central and what about remaining 50%
A supply made from Bangalore to Hyderabad Invoice value is Rs. 1,18,000/-(Value of supply1,00,000+18,000 )
Central Govt takes 9,000/-
Who will take remaining 9,000/- Whether Telangana or Karnataka?
Whether supplier state or Recipient state receives the GST revenue in case of Interstate supply. I knew that 50% will be taken by central and what about remaining 50%
A supply made from Bangalore to Hyderabad Invoice value is Rs. 1,18,000/-(Value of supply1,00,000+18,000 )
Central Govt takes 9,000/-
Who will take remaining 9,000/- Whether Telangana or Karnataka?
08 May 2018
In the GST regime, there are 3 Acts for charging GST, they are CGST(Central GST) for center's revenue, then there is SGST (State GST) state Govt's share of revenue & IGST (Integrated GST) that'll be distributed & allocated asper various provisions.
In case of intrasate supplies, CGST & SGST both will be charged at equal rates, they will sum up to be equal to the rate identified for the supply.
IGST, is a mechanism that ensures seamless flow of credit in case of INTERSTATE SUPPLIES.
So although as in above case if a Merchant in Delhi makes a supply in Uttar pradesh, taxable @ 12% although it will be charged as CGST & SGST both @ 6% each, the only difference will be that now the revenue will be collected by the state where consumption of supply took place.
So a State will get revenue from 2 sources :
SGST collection from supplies consumed within the state.
Center will transfer to the state, the credit of IGST used to pay SGST.
In case of intrasate supplies, CGST & SGST both will be charged at equal rates, they will sum up to be equal to the rate identified for the supply.
IGST, is a mechanism that ensures seamless flow of credit in case of INTERSTATE SUPPLIES.
So although as in above case if a Merchant in Delhi makes a supply in Uttar pradesh, taxable @ 12% although it will be charged as CGST & SGST both @ 6% each, the only difference will be that now the revenue will be collected by the state where consumption of supply took place.
So a State will get revenue from 2 sources :
SGST collection from supplies consumed within the state.
Center will transfer to the state, the credit of IGST used to pay SGST.
08 May 2018
No more doubtful in CGST and SGST. It's sharing as per 50:50...
But,
In the IGST amount will be accounted in Central Govt account. After a period it ll share as per states transactions related activities like in the VAT regime..
please refer "State Compensation"
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