Features of Indian GST
(1) In India, GST will be a "Dual GST" with both central GST and State GST components levied on the same base. All goods and services, barring a few exceptions, will be brought into the GST base. Importantly, there will be on distinction between goods and services for the purpose of the tax with common legislations applicable to both.
(2) Reason for Dual GST: India is a federal country where both the Centre and the State have separate powers to levy and collect taxes through appropriate legislations; and accordingly, both the levels of Government have distinct responsibilities to perform.
(3) The power to levy tax is drawn from the Indian Constitution, which has been amended through Constitution (101st Amendment) Act, 2016 assented by the president of India on 8 September 2016. Since, GST requires different kind of taxation powers than the ones provided for in the present Constitution, thus certain Constitutional Amendments have been necessitated in this context.
(4) All the amendments in the Constitution of India have been made effective from 16 September 2016, except in respect of creation of GST Council, which have been made effective from 12 September 2016.
(5) Concurrent power have been conferred upon the parliament and the State Legislatures, through Article 246A of the Constitution of India, to make law's governing GST.
Every state will legislate its own GS law, such as, Delhi GST Act, UP GST Act, MP GST Act, Gujarat GST Act, and so on, in addition to CGST Act by the Central Government. IGST (Intergrated GST Act by the Central Government.
(6) GST Council has been created to examine issues relating to GST and make recommendations to the Union and the State on various parameters, like rates of tax, exemption list, threshold limit, etc.
(7) The rates of CGST and SGST will be recomb mended by the GST Council keeping in view -
(a) the revenue considerations.
(b) Total tax burden; and
(c) the acceptability of the tax.
(8) In relation to levy tax on supply of goods, there might be 5 tier rate-structure; Exempted, Lower, Standard, Luxury and Bullion. In relation to taxation of services, there might be a single, or might be double rates.
(9) GST will subsume various central and state indirect taxes/duties on supplies of goods and services.
(12) Specified petroleum goods will be included into the GST regime from the date to be goods and services, except those which are kept out of the purview of the GST.
(10) The Central and State GST will be levied on all transactions involving supply of
(11) Alcoholic liquor for human consumption will be kept outside the GST structure.
recommended by GST Council.
(13) Concept of 'declared goods of special importance' will be dispensed with.
(14) Excise duty would be a matter of history in relation to goods covered within the scope of GST.
(15) Exports will be zero-rated and will be relieved of all embedded taxes and levies at both Central and State level.
(16) Import of goods and services would be treated as inter-state supplies and would be subject to IGST in addition to the applicable customs duties. The IGST paid shall be available as input tax credit for further transactions.
(17) Taxpayers with an aggregate turnover in a financial year up to specified limits, which may be between INR 10 lakhs and 25 lakhs, would be exempt from tax Aggregate turnover, to be computed on all India basis, shall include aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and /or services and exclude taxes viz. GST
