consumption

[Arun Aggarwal]

Sir

As I understand that in the regime of GST and specially for the SGST it is consumption based tax in the the state.

The mechanism of the area based exemption on SGST is based on that the product should be consumed in the state only.

My question is the on the defination of the consumption in the state , does it means industrial consumption also?

Arun

[KASTURI SETHI]

It is taxable. It is like captive consumption. The goods will reach final destination when these are completely finished. In other words goods cleared for industrial consumption, does not come into the definition of destination based consumption. Clear answer is no.

[YAGAY and SUN]

Please check the Budgetary Support Scheme under GST.

[KASTURI SETHI]

M/s.Yagay and Sun,

Dear Sir, Thanks for enrichment of knowledge.

[Arun Aggarwal]

Thanks

AI Summary

Destination-based consumption: industrial or captive use does not qualify for SGST state consumption exemptions.
SGST is destination/consumption-based and area-based exemptions depend on consumption within the state. Goods cleared for industrial or captive consumption do not qualify as destination-based consumption and therefore are excluded from state consumption for purposes of SGST area-based exemptions. Review of the Budgetary Support Scheme was suggested as a related consideration.