Frequently Asked Questions
What is the broad scheme of GST?
Barring exceptions and some exemptions, all goods and services are to be charged to GST. The supplier charges Central Tax and State Tax/ Union Territory Tax in case of intra-State supply of goods and/or services and Integrated Tax in case of inter- State supply.
GST is levied on price agreed between a supplier and the recipient except where such price is influenced or in any other way tainted. A registered tax payer recipient is allowed to take input tax credits of taxes paid to the supplier. This chain of tax credit does not stop till the goods and/or services reach the final consumer.
Import of goods is subject to Integrated Tax and is charged in terms of the Customs Act, 1962 read with the Customs Tariff Act, 1975. Baring exceptions, import of services are taxed on reverse charge basis.
For a single taxpayer, both the Central Tax and State Tax will be administratively dealt with by one of the two tax administrations: Centre or States as per an understanding and risk management tools finalized and operationalized.