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My manufacturing facility receives a state tax exemption. Will I still receive this exemption after GST is implemented?

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posted Nov 14 by Sumeet Vyas

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1 Answer

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It depends. Firstly, even if you do, it will now be as a credit. You will first have to pay GST, then get a credit from the state. This will impact your cash flow. Secondly, the state’s ability to continue offering exemptions will depend on how much revenue they are generating from your industry. GST is a consumption tax based on where goods are supplied to customers, not where they originate. So if most of your customers are located in other states, the state where your facility is located may not generate enough revenue to continue offering you an exemption.

answer Nov 15 by Divya Shree
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+1 vote

Hello, I have given a website designing work to a company.
The total project cost is INR 30,000 and it will be executed in 3 phases(10K for each phase). The first phase is completed, I have paid 10,000 + GST (18%) i.e. 1800 for this phase. Then, the company is asking for the whole GST amount although the project is not completed yet, only first phase is done. They are saying that they would need to pay the whole GST amount to Govt. in the beginning.
Moreover, still the invoice is not raised as the project is not completed.

I don’t have any idea about GST, but as per common sense I think they are bluffing. How could they would need to pay taxes for the amount which is not received at their bank account?

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