Goods & Services Tax (GST) implemented in India effective July 1, 2017

In India, due to the federal structure of the Constitution, the Central Government and the State Government have the power to levy a tax on their respective activities. Keeping the federal structure as the base, the Indian GST has also been designed in the form of Dual GST. This means that on every transaction of supply of goods and services, both the Central Government and the respective State Government would levy their respective GST.

Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) would be applicable on intra-State supplies and Integrated Goods and Services Tax (IGST) on inter-State supplies. Where the place of supply and location of supplier are in the same State, the supply would be considered as an intra-State supply. Whereas, if the place of supply and location of supplier are in different State, then the supply would qualify as an inter-State supply.

Accordingly, CGST, SGST, IGST and Union Territory Goods and Services Tax (UTGST) would be the various taxes which would get levied under the GST regime and legislation in this regard have been enacted.

As per guidance received from AMFI, GST has been implemented for Mutual Fund and all the distributor / vendor payments effective 1st July,’ 2017 are being made post GST deduction as applicable.

Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. This document provides general information on performance; financial planning and/or comparisons made are only for illustration purposes. The data/information used/disclosed in this document is only for information purposes and not guaranteeing / indicating any returns. This material provides general information and comparisons made (if any) are only for illustration purposes. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this document should understand that statements made herein regarding future prospects may not be realized. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the document is only for illustration purpose and should not be considered as recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved. Neither this document nor the units of L&T Mutual Fund have been registered in any jurisdiction except India. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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