This presentation summarizes key aspects of India's proposed Integrated Goods and Services Tax (IGST) and Compensation Draft Law. It introduces IGST as a new tax that will be levied on all inter-state supplies of goods and services at a rate equal to the sum of the CGST and SGST rates. It outlines provisions regarding the place of supply for determining whether a transaction is intra-state or inter-state. Input tax credit rules and the ability to claim a refund for zero-rated supplies are also summarized. The presentation provides an overview of the major components of India's proposed nationwide GST framework.

1. PRESENTATION ON
INTEGRATED GOODS AND SERVICESTAX &
COMPENSATION DRAFT LAW
BY: PARTH SINGHAL
TAXPERT PROFESSIONALS PRIVATE LIMITED

2. INDEXTO PRESENTATION
• Introduction
• Integrated Goods and ServicesTax [IGST]
• Supply of goods and services
• Place of supply of Goods and services
• InputTax Credit
• Zero Rated Goods

3. INTRODUCTION
• Under the proposed GST Draft Bill, all intra-state supplies
of Goods and Services are chargeable to SGST and CGST
which are equal in rate.
• Inter-state sales are chargeable to IGST which shall be
equal to the aggregate rate of CGST and SGST.
• Thus under GST regime, sales all over India would become
tax neutral, i.e. No difference on account of difference in
tax Rates.
Supplies of
Goods and
Services
Intra State
CGST SGST
Inter State
IGST

4. INTEGRATED GOODS AND SERVICESTAX [IGST]
• A revised draft of Integrated Goods and Services tax (IGST) has been released by the
central government on 28 November 2016.
• The provisions of the Bill will apply to whole of India.
• The date of coming in will be notified by the Central Government by means of a
notification in the Official Gazette.
Charging Section : Section 5 :
“ There shall be levied a tax called Integrated Goods and Services Tax on all supplies of goods
and /or services made in the course of inter state trade or commence on the value determined
under section 15 of CGST Act, 2016 and at such rate as may be notified by the Central
Government”.

5. SUPPLY OF GOODS
IN COURSE OF INTER STATE TRADE
IGST on Goods
Location of Supplier and
Place of Supply in
different States
Supply in the course of
import till they cross the
Customs Frontiers of
India
Supply in the course of
Export (supplier located
in India, place of Supply
outside India)

6. SUPPLY OF SERVICES
IN COURSE OF INTER STATE TRADE
IGST on Services
Location of Supplier
and place of Supply of
Service is in different
states
Services in the Course
of Import.
Export of services
wherein the recipient
of Services is located
in non-taxable
territory.

7. COMMON PROVISIONS
• Any supplies of Goods/services to/from units located in SEZs or developers of SEZs shall
be treated as inter-state supply for the purpose of GST.
• Any supplies of Goods/services in taxable territory not being intra-state sale and not
covered elsewhere, shall be considered as inter-state sale.

8. PLACE OF SUPPLY
PlaceofSupply
Goods
Location of Goods
Location of recipient
Services
Location of recipient
Location of supplier
Actual Place of Performance

9. PLACE OF SUPPLY
IN CASE OF GOODS
Location of
Goods at the
time of Delivery
Supply involves
movement of Goods
Supply does not involve
movement
Supply involves installation/
assembly – Location of such
installation/assembly
Place where
Goods are
taken on board
Supply on
board a
conveyance
(such as
vessel or
aircraft)
Principal place
of Business of
Recipient
Goods are delivered to
some other person, on
the direction of third
person, either by way of
transfer of documents of
title or otherwise.
Such third person shall
be the deemed resident.

10. PLACE OF SUPPLY
IN CASE OF SERVICES - GENERAL
Place of Supply of Services
Registered person Location of recipient
Unregistered Person
Address Available on
record – Location of
Recipient
Address Not available on
record – Location of
Supplier

11. PLACE OF SUPPLY
IN CASE OF SERVICES - SPECIFIC
Services related to immovable
property- Location of the
property or where it is
intended to be located
Admission to amusement
parks, exhibitions etc –
Location of such event or park
Services on board a
conveyance – First Point of
Departure of such conveyance
Mail, courier services – Place
where goods are handed over
to the carrier. (unregistered
person)
Passenger transportation –
Place where recipient embarks
on the journey (unregistered
person)

12. PLACE OF SUPPLY
IN CASE OF SERVICES -TELECOM SERVICES
• For Post paid services – Billing address of the recipient.
• For prepaid services, place of business of the supplier from where the voucher is
purchased.
• In other cases, address of recipient as per records of the supplier of service.
• In case of Fixed Line/D2HTelevision place where the fixed line/antennae/cable
connection etc is installed for provided for providing the services.

13. PLACE OF SUPPLY
ONLINE INFORMATION DATABASE ACCESS AND RETRIEVAL SERVICES
• With respect to OIDARS place of provision of Service shall be the location of recipient
of service.
• Person located in the non-taxable territory (supplier) shall be liable to pay IGST.
• Any person located in taxable territory representing such person shall take registration
and pay IGST on behalf of such person.
• If such person does not have a physical presence or representative in taxable territory, he
may appoint a person in the taxable for the purpose of paying IGST.

14. INPUT TAX CREDIT
Input Credit of
IGST
Adjusted against
liability of IGST
Adjusted against
liability of SGST
or CGS if credit
is still left
Input credit of
SGST
Adjusted against
output SGST
Adjusted against
liability of IGST
Input credit of
CGST
Adjusted
against output
liability of
CGST
Adjusted
against output
liability of
IGST

15. ZERO RATED SUPPLIES
• As per section 16, Export of Services/Goods and supply of Goods/Services shall be zero
rated i.e. chargeable to zero rate of tax.
• The registered person making the supply shall be eligible to claim refund in respect of the
input tax credit.

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