20 Why GST GST Framework Key Concept 1 Levy Dual GST regime CGST SGST on intra

20 why gst gst framework key concept 1 levy dual gst

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Why GST ? GST Framework Key Concept 1. Levy Dual GST regime CGST + SGST on intra-state supplies IGST on inter-state supplies 2. Rate 0% 21 One Tax One Market Concept Simpler and rational tax structure Fungibility of credits – Reduced tax cascading Standard IT enabled complianc es
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5% 12% 18% 28% (plus cess in few cases) Goods & services 3. Exclusions Basic Customs Duty Petroleum products, alcohol, power Stamp Duty 4. Credits Credit for most business expenses allowed - Stringent conditions for availment prescribed Cross-utilization permitted between CGST/ SGST and IGST subject to restrictions 5. Place of supply PoS Rules to determine levy/ jurisdiction: Separate PoS for goods & services 6. Valuation Transaction value based mechanism – No MRP based valuation Valuation Rules have been prescribed 7. Time of supply Goods – Earlier of date of removal/ invoice/ payment Services – Earlier of date of invoice or payment GST Roadmap and Status 1. GST legislation CGST, IGST, UTGST and Compensation Acts notified Draft rules pertaining to composition scheme, valuation, input tax credit, transitional provisions, e-way bill requirements, accounts & records, assessment & audit have been released 22
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Revised rules pertaining to Invoices, Payments, Returns and Registration have been released 2. GSTN – IT backbone of GST Government aiming at implementing GSTN in phases GSTN portal opened for registration migration of existing taxpayers Returns and payment prototype released – Initial testing of the system commenced 3. Key next steps for the Government SGST Laws to be passed by each State legislature Classification of Goods and Services into different tax slabs Development of front-end and back- end IT processes Testing of IT systems Road shows to be conducted for creating awareness in the industry 1 July 2017 announced as the possible date for GST implementation (Govt. can implement GST until 15 September 2017) . Taxes which are subsumed under GST The GST would replace the following existing taxes : (i ) Taxes currently levied and collected by the Centre: a. Central Excise duty b. Duties of Excise (Medicinal and Toilet Preparations) 23
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c. Additional Duties of Excise (Goods of Special Importance) d. Additional Duties of Excise (Textiles and Textile Products) e. Additional Duties of Customs (commonly known as CVD). f. Special Additional Duty of Customs (SAD) g. Service Tax h. Central Surcharges and Cesses so far as they relate to supply of goods and services. (ii) State taxes that would be subsumed under the GST are: a. State VAT b. Central Sales Tax c. Luxury Tax d. Entry Tax (all forms) e. Entertainment and Amusement Tax(except when levied by the local bodies) f. Taxes on advertisements g. Purchase Tax h. Taxes on lotteries, betting and gambling i. State Surcharges and Cesses so far as they relate to supply of goods and services COMMODITIES PROPOSED TO BE KEPT OUTSIDE THE PURVIEW OF GST Following are the commodities - 1. Alcoholic liquor for human consumption 24
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  • Fall '17
  • Mahvish ali

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