GST harmonisation of indirect taxes enables barrier-free interstate movement, reshaping supply chains and warehousing rationale.
GST will subsume most central and state indirect levies, removing internal checkpoints and entry taxes to enable freer interstate movement and a single common market. Uniform tax incidence and an input tax credit regime will permit consolidation of inventory into central warehouses, encourage longer-term logistics contracts, use of larger vehicles, and increased outsourcing to third party logistics providers. The Model GST law's inspection, search and seizure powers over transporters and warehouses and the potential persistence of municipal levies are noted as enforcement and transitional concerns. (AI Summary)

Unjust enrichment principle in GST: refunds require proof tax incidence was not passed on and specified accounting evidence.
Applicants claiming GST refunds must demonstrate that tax incidence has not been passed on, subject to exceptions for exports, inputs/services for export, and unspent PLA balances. Refunds must be shown as "Duty Receivable" current assets with year end journal entries linking invoices to the receivable. Certification thresholds vary by refund size, with professional certification required in larger cases. Refunds linked to inputs, capital goods, discounts, provisional assessments or favourable appellate orders require accounting adjustments or reversal of input credit to satisfy the unjust enrichment test; unjust enrichment does not apply to pre deposit refunds. (AI Summary)

GST Council as federal governance forum coordinating tax rates, exemptions and apportionment requiring weighted consensus for implementation.
The GST Council, a constitutional recommendatory federal forum under Article 279A, combines delegated legislative and administrative functions to advise Union and States on GST design and implementation, including rates, exemptions, a model law, IGST apportionment, place-of-supply principles, threshold exemptions, special state provisions, procedural rules and timing for certain petroleum products; it is composed of Union and State finance ministers with a quorum of half and weighted voting requiring a weighted supermajority, and must resolve challenges such as compensation for revenue losses, finalising exemptions, setting a revenue-neutral rate, and dispute-resolution arrangements. (AI Summary)