TaxTMI 
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TaxTMI 
consumption
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....onsumption<br> Query (Issue) Started By: - arun aggarwal Dated:- 11-12-2017 Last Reply Date:- 11-12-2017 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Sir, I want to understand the difference between the local consumption and local sales under the GST regime if any . Any commodity sold locally in the same state after charging SGST and CGST not necessarily will be consumed in the same s....
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....tate and can be sold further to any other state after charging IGST. The problem may arise where the sales/clearances made by the units availing the area based exemptions and after getting some benefits in the SGST and CGST from the state govt on the local consumption and which in return can be further sold to some other state after charging IGST and were never actually consumed in the same state....
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.... but were only sold. Pls help me to understand this Thanks Arun Reply By ANITA BHADRA: The Reply: The term sales has been replaced with SUPPLY in GST regime Your point can be explained with the help of following example :- Suppose Mr X ( in Karnataka )sold an item to Mr. Y in same state( Karnataka ) . He will charge SGST & CGST . If the same good will be sold by Mr. Y to other state ( say ....
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....Maharashtra ) , Mr. Y will be charging IGST Mr. Y will avail ITC for CGST & SGST paid to X and the Maharashtra will be the consumption point Regarding Area Based Exemption :- Due to introduction of GST all the manufacturing units are mandatorily required to clear the manufactured goods including traded goods on payment of GST Area based exemption unit will be eligible for budgetary support . ....
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....The application for imbursement of budgetary support shall be made by the eligible unit after the payment of CGST/IGST has been made, for the quarter to which the claim relates, in cash, in respect of specified goods after utilization of Input Tax credit, if any. Thus even for area based exemptions , GST has to be paid and then budgetory support will be provided . Regards Reply By arun aggarwal....
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....: The Reply: Madam . Does that means local consumption and local sales have the same meaning under GST? Reply By ANITA BHADRA: The Reply: Sales and consumption are two different terms . The term sales has been replaced with Supply but consumption has its own meaning . GST is destination (consumption) based tax means where the goods and services supply will flow (consumed) whole tax revenue w....
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....ill go to that state. Reply By arun aggarwal: The Reply: thanx Reply By KASTURI SETHI: The Reply: I support the views of the expert. Reply comprehensive and crystal clear.<br> Discussion Forum - Knowledge Sharing ....