Sharing of gst revenue

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Mahesh Kothagolla (Querist)
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08 May 2018 Sir/Ma'am,

Whether supplier state or Recipient state receives the GST revenue in case of Interstate supply. I knew that 50% will be taken by central and what about remaining 50%

A supply made from Bangalore to Hyderabad Invoice value is Rs. 1,18,000/-(Value of supply1,00,000+18,000 )
Central Govt takes 9,000/-
Who will take remaining 9,000/- Whether Telangana or Karnataka?

CA AMIT KUMAR SHARMA

CA AMIT KUMAR SHARMA (Expert)
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08 May 2018 In the GST regime, there are 3 Acts for charging GST, they are CGST(Central GST) for center's revenue, then there is SGST (State GST) state Govt's share of revenue & IGST (Integrated GST) that'll be distributed & allocated asper various provisions.

In case of intrasate supplies, CGST & SGST both will be charged at equal rates, they will sum up to be equal to the rate identified for the supply.

IGST, is a mechanism that ensures seamless flow of credit in case of INTERSTATE SUPPLIES.

So although as in above case if a Merchant in Delhi makes a supply in Uttar pradesh, taxable @ 12% although it will be charged as CGST & SGST both @ 6% each, the only difference will be that now the revenue will be collected by the state where consumption of supply took place.

So a State will get revenue from 2 sources :

SGST collection from supplies consumed within the state.
Center will transfer to the state, the credit of IGST used to pay SGST.

RAJA P M

RAJA P M (Expert)
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08 May 2018 No more doubtful in CGST and SGST. It's sharing as per 50:50... But, In the IGST amount will be accounted in Central Govt account. After a period it ll share as per states transactions related activities like in the VAT regime.. please refer "State Compensation"

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