− Decoding GST
Petroleum Products is currently out of the GST ambit ,However, petroleum and petroleum products shall only be subject to GST later depending on the GST Council’s recommendation. States will continue to have power to impose sales tax on sale within state on petroleum products & alcoholic liquor for human consumption vide Entry no 54 of List II of Seventh Schedule to COI. Simultaneously, Central Excise duty will continue on petroleum products & tobacco products vide Entry no 84 of List I to COI. This Entry has been replaced with Sec 17 of the constitution amendment act 2016 on 16 September 2016.
− Issues Post GST implementation
− Proposed “Zero rated GST on petroleum products”
There is a thin line of difference between Zero rated and exempted products. In case of zero rated products, the tax pad at input stage is refunded. The refund of inputs removed the cascading effect of taxes. The liability to pay taxes at the output stage doesn’t arises at all. Under “MGL” exports are treated as Zero rated.
While the story behind exempted product is slightly different , Although there is no tax at output stage but the input tax paid on inputs are not refunded and hence , this turns out to be partial relief.
− Highlights after its inclusion
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018