sec 17 of IGST Act,2017, Apportionment of tax and settlement of funds
The below post explains about Apportionment of tax and settlement of funds under section 17 of IGST Act,2017.
Section 17 of IGST Act, 2017 explains Apportionment of tax and settlement of funds as below: (The amendments if any will also be updated here soon).
The extract of Section 17 of IGST Act,2017 quoted below:
17 Apportionment of tax and settlement of funds
17. (1) Out of the integrated tax paid to the Central Government,––
(a) in respect of inter-State supply of goods or services or both to an unregistered
person or to a registered person paying tax under section 10 of the Central Goods and
Services Tax Act;
(b) in respect of inter-State supply of goods or services or both where the
registered person is not eligible for input tax credit;
(c) in respect of inter-State supply of goods or services or both made in a financial
year to a registered person, where he does not avail of the input tax credit within the
specified period and thus remains in the integrated tax account after expiry of the due
date for furnishing of annual return for such year in which the supply was made;
(d) in respect of import of goods or services or both by an unregistered person
or by a registered person paying tax under section 10 of the Central Goods and Services
Tax Act;
(e) in respect of import of goods or services or both where the registered person
is not eligible for input tax credit;
(f) in respect of import of goods or services or both made in a financial year by
a registered person, where he does not avail of the said credit within the specified
period and thus remains in the integrated tax account after expiry of the due date for
furnishing of annual return for such year in which the supply was received,
the amount of tax calculated at the rate equivalent to the central tax on similar intra-State
supply shall be apportioned to the Central Government.
(2) The balance amount of integrated tax remaining in the integrated tax account in
respect of the supply for which an apportionment to the Central Government has been done
under sub-section (1) shall be apportioned to the,––
(a) State where such supply takes place; and
(b) Central Government where such supply takes place in a Union territory:
Provided that where the place of such supply made by any taxable person cannot
be determined separately, the said balance amount shall be apportioned to,––
(a) each of the States; and
(b) Central Government in relation to Union territories,
in proportion to the total supplies made by such taxable person to each of such States or
Union territories, as the case may be, in a financial year:
Provided further that where the taxable person making such supplies is
not identifiable, the said balance amount shall be apportioned to all States and
the Central Government in proportion to the amount collected as State tax or,
as the case may be, Union territory tax, by the respective State or, as the case
may be, by the Central Government during the immediately preceding financial
year.
(3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated
tax shall, mutatis mutandis apply to the apportionment of interest, penalty and compounding
amount realised in connection with the tax so apportioned.
(4) Where an amount has been apportioned to the Central Government or a State
Government under sub-section (1) or sub-section (2) or sub-section (3), the amount collected
as integrated tax shall stand reduced by an amount equal to the amount so apportioned and
the Central Government shall transfer to the central tax account or Union territory tax
account, an amount equal to the respective amounts apportioned to the Central Government
and shall transfer to the State tax account of the respective States an amount equal to the
amount apportioned to that State, in such manner and within such time as may be prescribed.
(5) Any integrated tax apportioned to a State or, as the case may be, to the Central
Government on account of a Union territory, if subsequently found to be refundable to any
person and refunded to such person, shall be reduced from the amount to be apportioned
under this section, to such State, or Central Government on account of such Union territory,
in such manner and within such time as may be prescribed
The above information clarifies about Apportionment of tax and settlement of funds under section 17 of IGST Act,2017.
If you have any comments about Section 17 of IGST Act, 2017 explaining Apportionment of tax and settlement of funds, share below your thoughts:
Click here to know GST rate of your goods or service
GST Exemption list of goods and services
Find HSN number or Service tariff code for GST
Indian GST Laws
How to export your goods?
How to get Export Order?
GST Registration Guidelines
Learn Imports and Exports business free of cost
Find HSN code of your product.
GST rate payable for photographic goods and cinematographic commodities
GST rate payable for wood tar oils, fire-extinguisher preparations
Percentage of GST payable for Plastic
Rate of GST payable for Rubber and rubber products in India
GST for Leather industry in India
GST for Leather industry in India
GST rate for Beer, wine, rum, brandy, whisky, vinegar etc.
GST for Animal Feed and Residues from Food Industries
GST tariff rate for Tobacco, cigarettes, cheroots, tobacco products
Tariff of GST for sale of Salt, plastering materials, cement, lime etc.
Rate slab of GST for Slag, Ash and Ores in India
Rate tariff of GST for mineral fuels, waxes, bituminous substance etc.
GST for Inorganic chemicals in India
How to export goods from India?
Procedure for obtaining Registration number of GSTIN
Procedures to switch from Compounding scheme to normal under GSTIN
Would multiple registration be allowed under Goods and Service Tax (GSTIN)?
How many digits in GSTIN under Goods and Service Tax registration
Registration procedures and formalities to obtain GSTIN
How to get GSTIN? (Goods and Service Tax Identification Number)
Advantages of registering for GSTIN under Goods and Service Tax Act
Goods and Service Tax (GST), a simple tutorial part 1
How to customs clear Cargo arrived in a port where in import license obtained for another port
How to differentiate BL and HBL?
How to differentiate CPT and DAP in shipping terms
How to divert cargo from one port to another?
How to file bill of entry Manually. What is manual filing of Import Documents?
How to file Bill of Entry on line? What is called Noting in bill of entry
How to get exemption of Sales Tax under exports.
What happens if overseas buyer not paid export bills discounted.
What happens if proper tracking of goods not effected in export import business?
What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?
.