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.

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