Highlight Of Gst As Proposed

  • Uploaded by: Michael Duran
  • 0
  • 0
  • July 2020
  • PDF

This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA


Overview

Download & View Highlight Of Gst As Proposed as PDF for free.

More details

  • Words: 436
  • Pages: 2
HIGHLIGHT OF GST AS PROPOSED 1. The Structure The proposed GST structure in India is dual structure. GST shall have two components- Central GST and State GST. The model shall be implemented by multiple statutes- one for Central GST (CGST) and SGST (SGST) statute for every state.

2. Applicability of GST: The Central GST and State GST would be applicable to all transactions of goods and services made for a consideration except exempted goods and services, goods which are outside the GST and the transactions which are below the threshold limits.

3. Chargeability to Tax: The basic feature of the law such as chargeability, definitions, assessee/person, levy including valuation provisions, basis of classification, etc would be uniform across these statues i.e. CGST & SGST. An uniform procedure for collection of both Central GST and State GST shall be prescribed.

4. Collection of taxes: Central GST shall be payable to the account of Central Government whereas State GST shall be payable to the account of State Government. Separate accounts for these taxes are to be maintained. The same means that one dealer would be charged for both CGST AND SGST on the same valued transaction in the same Invoice separately and paying the CGST to Centre and SGST to State.

Page 1

5. Input Tax Credit availment: Input tax credit (ITC) of Central GST shall be allowed to be utilized for payment of Central GST only and ITC of state GST can be used for payment of State GST only. Cross utilization will not be allowed except in cases of inter state supply of goods and services under Integrated Goods and Services (IGST) model.

6. Threshold Limit: Threshold limit proposed for Central GST for goods 1.5 crores and for services may be high. For all the states and union territories state GST for goods and services would be Rs. 10 lakhs. Further, a compounding scheme for the states GST is being proposed for turnover up to 50 lakhs of gross annual turnover and a flat rate of 0.5% across the states. It is understood that the threshold limit for services, it is yet to be determined under Centre GST.

7. Items not covered under GST: The proposed GST Structure keeps liquor and petroleum products out of the purview of GST. Tobacco products shall be subject to GST with input tax credit. Centre shall be allowed to levy state excise duty over GST on tobacco products. GST shall be levied on imported goods and services by centre. Input tax credit shall be available and tax revenue shall go to the state based on following destination principle.

Page 2

Related Documents

Highlight Report
July 2020 4
Gst Registration.docx
November 2019 63
Gst-challan.docx
April 2020 40
Gst Audit.pdf
December 2019 48

More Documents from "PAWAN K JAIN"