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Background Material on Goods & Service Tax (GST) issued by ICAI

 

The Institute of Chartered Accountants of India, with a view to update the members and other stakeholder at large about GST, has launched a Background Material on GST. The material covers various topics like concept of GST, its pros and cons, its feasibility & impact in India, challenges for Indian economy, GST in other countries etc. It is an all-inclusive material, which would provide an insight to the basic concepts of proposed GST regime.

 

CONTENTS

 

  • Indirect Tax Structure in India – An Introduction
  • What is GST, How it Works & its Advantages
  • Models of GST
  • Expected Model of GST in India
  • Revenue Neutral Rate (RNR)
  • Taxes/Duties to be Subsumed in GST
  • Inter-State Transactions and GST
  • Present Taxation vs. GST
  • Roadmap to GST in India
  • Challenges before the Government & Transitional Issues
  • Impact on Key Industries/Sectors
  • Expectations of Industry from GST
  • GST in other Countries
  • GST- Role of Chartered Accountants
  • Working Paper [No. 1/2009-DEA] on Goods & Services Tax
  • ICAI’S Concept Paper – GST Model for India – Suggestions
  • Relevant Articles of the Constitution of India
  • Entries in Schedule VII to the Constitution of India (Relating to Indirect Taxes)
  • C-1 First Discussion Paper on Goods and Services Tax in India

 

You can download the Background Material on GST from Knowledge here. 

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CA Prakash Chartered Accountant Bangalore
CA Prakash is a practicing chartered accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]
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    Silent feature of the constituent amendment Bill on Goods and Service Tax placed in Lok Sabha

    Article 246A – confer simultaneous power to Union and State legislatures to legislate on GST.

    Article 279A – creation of a Goods & Services Tax Council which will be a joint forum of the Center and the States. This Council would function under the Chairmanship of the Union Finance Minister and will have Ministers in charge of Finance/Taxation or Minister nominated by each of the States & UTs with Legislatures, as members. The Council will make recommendations to the Union and the States on important issues like tax rates, exemptions, threshold limits, dispute resolution modalities etc.

    • Do away with the concept of ‘declared goods of special importance’ under the Constitution.

    • Centre will compensate States for loss of revenue arising on account of implementation of the GST for a period up to five years.

    • Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST.

    • At the State level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
    • All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST. Petroleum and petroleum products have also been Constitutionally brought under GST. However, it has also been provided that petroleum and petroleum products shall not be subject to the levy of GST till notified at a future date on the recommendation of the GST Council. The present taxes levied by the States and the Centre on petroleum and petroleum products, i.e., Sales Tax/VAT, CST and Excise duty only, will continue to be levied in the interim period.
    • Both Centre and States will simultaneously levy GST across the value chain. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
    • The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States.
    • GST is a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State.
    • GST rates will be uniform across the country. However, there will a provision of a narrow tax band over and above the floor rates of CGST and SGST.
    • It is proposed to levy a non-vatable additional tax of not more than 1% on supply of goods in the course of inter-State trade or commerce. This tax will be for a period not exceeding 2 years, or further such period as recommended by the GST Council. This additional tax on supply of goods shall be assigned to the States from where such supplies originate.
    • The term “Services” is proposed to be exclusively defined as “anything other than goods”
    Copy of the GST constitutional Amendment Bill can be accessed from the below link
    http://www.prsindia.org/uploads/media/Constitution%20122nd/Constitution%20122nd%20Bill.pdf

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