Question 21 - If consideration for a particular supply of services was received under the earlier law and tax on it was paid, will GST also become payable where such supply is made in GST regime
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 24 Transitional Provisions
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Transitional exemption prevents GST where consideration was received and tax paid under the earlier law before implementation. Where consideration for a supply was received prior to the appointed day and tax under the earlier law on that receipt has been paid, the transitional framework exempts that supply from GST on or after the appointed day to prevent duplicate taxation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transitional exemption prevents GST where consideration was received and tax paid under the earlier law before implementation.
Where consideration for a supply was received prior to the appointed day and tax under the earlier law on that receipt has been paid, the transitional framework exempts that supply from GST on or after the appointed day to prevent duplicate taxation.
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