GST BILL,2016
PAWAN PATHAKLAW ASSOCIATE
India is all set to roll out the largest indirect tax reform
since Independence 1947. Finance minister Arun Jaitley is expected
to table the Constitution Amendment Bill in the current session of
Parliament to meet the deadline of 2016, for its introduction. For
the tax to be implemented, the constitution has to be amended &
consensus must be reached within states. GST-The Biggest Tax
Reform
SIMPLIFYING GSTGoods and service tax(GST) is a single tax rate
levied on the manufacture, sale and consumption of goods and
services at a national level.In this system, GST is levied only on
the value-added at every stage of production. This will ensure that
there is no cascading effect of taxes(tax on tax) on inputs that
are used in manufacturing of goods.
How to calculateFor example if a tax of 15% is levied on base
price of product which is 2 lakh Rs, then GST will be 30000 Rs. At
next stage when same goods are sold for base price of 250000 Rs
then GST will be 37500 Rs but since there is set off( input tax
credit) of 30000 Rs is available, the actual Tax at this stage will
be 7500 Rs( 37500 30000)
Existing tax V. GST
PROPOSED GST STRUCTURE
BENEFITS OF GST
Subsumation of taxes
Model GST bill,2016It has 162 sections divided into 25 chapters
and 4 schedules along with 1 evaluation rules is
given.Applicability of GST - on SUPPLY goods and services as
defined under section 2 Definition which is applicable throughout
India.
Chargeability of GSTIs at 3 levels CGST, SGST, IGSTTAX SLABS
still not decided by legislatureTo discuss chargeability, levy and
exemption I would like to refer chapter 3 of this Bill which will
give us brief idea on Levy and collection of centre/ state
GSTCOMPOSITION LEVYTAXABLE PERSONEXEMPTION LIST
Point of taxationRefers to chapter 4 of this Bill time and value
of supplyThis chapter give us brief idea on issues like in whose
hand the GST will be chargeable, reverse charge, forward charge
mechanism.
REGISTRATION CHAPTER 6 gives reference on registration and who
has to compulsorily get registered and where all to be registered
.Special provision relating to casual taxable person and non-
resident taxable person.Provision regarding cancellation and
revocation of registration.
Ask your concerns, if any in relation toChapter 7 tax invoice,
credit and debit notesChapter 8- RETURNSChapter 9- payment of
taxChapter 12- AssesmentChapter 16- offences and penaltiesChapter
18 AppealsChapter 24- repeal and savings
