CENTRAL GOODS AND SERVICES ACT 2017

Section 1 of CGST Act 2017  : "Short Title, Extent and Commencement" 

                              

1. This Act may be called  Central Goods and Services Act 2017.

2. It extends to whole of India except Jammu and Kashmir.

3. It shall come from such date as the Central Government may, by notification in Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and reference in any such provision to the commencement of this Act shall be construed as reference to the coming into force of that provision.

Analysis: It is very unfortunate that we could not achieve "ONE NATION - ONE TAX". Different Dates for Different Provisions means the applicability of some provisions may defer and which are not applicable from the date when CGST Act,2017 will be notified in Official Gazette.

Input Tax credit Under GST would be permitted to be utilized in the following manner:

a) ITC of CGST allowed for payment of CGST & IGST in that order;
b) ITC of SGST allowed for payment of SGST & IGST in that order;
c) ITC of UTGST allowed for payment of UTGST & IGST in that order;
d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order. ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.