Skip to main content

GOODS AND SERVICE TAX COUNCIL

The GSTC has been notified with effect from 12th September, 2016. GSTC is being assisted by a Secretariat. The following major decisions have been taken by the GSTC in different meetings held by them:

  1. The threshold exemption limit would be ` 20 lakh. For special category States enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ` 10 lakh. 
  2. Composition threshold shall be ` 75 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. 
  3. Existing tax incentive schemes of central or state governments may be continued by respective government by way of reimbursement through budgetary route. 
  4. There would be four major tax rates namely 5%, 12%, 18% and 28%. The tax rates for different goods and services have been finalized. Besides, some goods and services would be under the list of exempt items. The exempted services has been finalized, except services supplied by Goods and Services Tax Network which is the addition to the list of exempted services under service tax regime. Rate for precious metals is an exception to ‘four-tax slab-rule’ and the same has been fixed at 3%. A cess over the peak rate of GST @ 28% on certain specified luxury and demerit goods, like tobacco and tobacco products, pan masala, aerated waters, motor vehicles, would be imposed for a period of five years to compensate States for any revenue loss on account of implementation of GST. The list of services in case of which reverse charge would be applicable has also been finalized. 
  5. The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law have been recommended. 
  6.  In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ` 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ` 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration.
  7. Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. 
  8. Power to collect GST in territorial waters shall be delegated by Central Government to the States.
  9. Formula and mechanism for GST Compensation Cess has been finalised. 
  10. Nine rules on registration, composition levy, valuation, tax invoice, input tax credit, payment, returns, refund and transitional provisions have been recommended. 
  11.  www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. 
  12. Rate of interest on delayed payments and delayed refund has been recommended. 
  13. Rate of Tax Collection at Source (TCS) has been recommended.
Labels:

Comments

Post a Comment

Popular posts from this blog

E Way Bill [An understanding of e-way bill provisions]

A waybill is a document issued by a  carrier  giving details and instructions relating to the  shipment  of a  consignment  of  goods . Typically it will show the names of the  consignor  and  consignee , the point of origin of the consignment, its destination, and  route . Accordingly, it’s an official shipping document that travels with a shipment, identifies its consignor, consignee, origin and destination, describes the goods, and shows their weight and freight. The Central Government vide Notification No. 27 /2017 – Central Tax dated 30.08.2017 has amended the CGST Rules, 2017, to incorporate the provisions of e-way bill. Detailed analysis of the provisions of e-way bill in question answer form are as follows: 1.  When the provisions of e way bill applicable in India? Ans.   E way bill provisions shall come into force on such date as the Central Government may, by notification in the Offici...
2 comments
Read more

GOODS AND SERVICE TAX

Goods and Services Tax (GST) is a comprehensive tax on supply of goods or services or both. It eliminates the cascading effect of taxes, as GST is imposed at every stage of supply chain and the input credit is available in across the supply chain. The uninterrupted credit in the supply chain ensures that the end consumer purchases goods and services at a lower price and to ensure this the government has introduced the Anti-profiteering clause based on the experience in Malaysia where GST was implemented from 1st April 2015.    Under GST, taxes are paid at all stages in the supply chain i.e. from manufacturing to the end sale to the consumer. Taxes are levied at all the stages and input tax credit is available to the extent of the tax paid during the purchase. The end consumer will not pay taxes directly to GST authorities; the retailer pays the taxes on behalf of the end consumer. The overall idea of having GST in India is to increase the tax base over a period, and this wi...
Post a Comment
Read more

NISM-Series-V-A: Mutual Fund Distributors Certification Examination

Mutual Fund Investors   Eligibility to Invest  The following categories of people/entities are eligible to purchase Units of most schemes of mutual funds: Individual Investors They invest for their personal benefit or the benefit of their family. Examples: Resident Indian adult individuals, above the age of 18 : They can invest, either singly or jointly (not exceeding three names).  Minors i.e. persons below the age of 18 : Since they are not legally eligible to enter into a  contract, they need to invest through their guardians.  Hindu Undivided Families (HUFs): Here, family members pool the family money (inherited) for investments.  The head of the family (called “Karta”) invests on behalf of the family.  Against his name in the application, he would add the letters “HUF” to show that the investment belongs to the family.    Non-Resident Indians (NRIs) /Persons of Indian origin (PIO) resident abroad: Indian citizens, who are w...
Post a Comment
Read more