Goods and Service Tax Bill

GOODS AND SERVICE TAX BILL (GST Bill)

What is G.S.T.:

Goods and Service Tax is an integrated tax system which levy the tax on supply of goods or service or both rather than imposing the tax on sale or purchase in the indirect taxation in India. It brings lots of reforms in the taxation system and all types of taxes can come under one roof and may be levied and collected at a time rather that imposition of tax on tax at various stages what now our Government is following.

Highlights of the G.S.T. Bill:

·         The bill amends the Articles 249, 250 and other of constitution to introduce Goods and Service Tax in Indian Indirect Taxation system.

·         Parliament and state legislature are having the powers to amend the Constitution and having power to make Laws and Acts.

·         Alcohol for human consumption has been exempted from the G.S.T.

·         In the beginning G.S.T. will not impose or levy excise duties or VAT on the petroleum, diesel, petrol, natural gas, crude oil and others petroleum products. At later date the G.S.T. council may take the decision of tax imposition on such products.

·         G.S.T. council will recommend the rates tax on Goods and service and other changes in the taxation system.

Scope of G.S.T.:

·         GST will be imposed on supply of goods and service inspite of sale or purchase of goods.

·         Liquor for human consumption shall be exempted from G.S.T.

·         Tobacco and tobacco products may be subjected to G.S.T.. the Central may impose the excise duty on the tobacco and tobacco products.

·         In beginning of implementation of the GST Petroleum products may be exempted under GST for few years and later date the GST council may decide the tax imposition under GST Act.

Power to Levy of G.S.T. :

·         The Central Government and State Government both are having the power to impose and levy of G.S.T.

·         The law or Act made by the Central can not be override by the the State Government Laws or Acts in a same issue.

·         Based on the recommendations of the GST council, tax rates may be decided.

Constitutional Amendments for G.S.T.:

·       An amendment of 122^nd was introduced in the Parliament for passing of the GST Bill.

·       As per the existing structure of the indirect tax system the GST system will be introduced.

·       In Article 249 the parliament has vested with powers to make laws pertaining to GST on behalf of the national interest. The Central Government may implement GST by appointing GST Counseling in case of Emergency in Country or a particular State.

·       In regard to above there may be certain amendments has to done for these articles and Seventh Schedule of the Constitution of India.