“One Nation, One Tax” – this was the theme on which the GST law was introduced!
Well for starters, it became “one State one tax” as GST recognised branches/location of one legal entity
(single PAN) operating in different states as distinct persons, liable to separate compliances. The recognition of this concept was found in provisions relating to registration and in supplies without consideration, a concept by which GST was made applicable on stock transfers (similar to central excise law). As GST law equated both goods and services equally, the levy of GST on stock transfer extended to stock transfer of services, a concept alien to taxation of services
The concept of levying GST on stock transfer of services itself raises multiple challenges –
- the basic nature of intangibles
- identification of nature of services which one office may provide to other and vice versa
- to put a price tag
Thus, the larger question of “what all can be covered under such ambit”? remains unanswered and a