constitution amendment bill for gst

8/7/2019 Constitution Amendment Bill for GST

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Constitution Amendment Bill for

GST

By,

Binod KumarSoumia Mohandas

Venkatramana

VijaySarathi


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Agenda

What is GST?

How GST is different from Current taxes?

When and How? Benefits and Future

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What is GST?

GST is stands for Goods and Service Tax.

GST would be levied on all the transactions of goods and services made for a consideration. This newlevy would replace almost all of the indirect taxes. In particular, it would replace the following indirecttaxes:

At Central level

Central Excise Duty

Service Tax Additional Excise Duties

Excise duty

VAT

Excise Duty levied on Medicinal and Toiletries preparations,

Surcharges and cesses

Central Sales Tax

At State level

VAT/Sales tax Entertainment tax (unless it is levied by the local bodies)

Luxury Tax

Taxes on lottery, betting and gambling

Surcharges

Octroi

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How GST is different from the current

taxes? GST is different from the current tax structure in many ways. Currently, taxes treat goods

and services differently. , goods attract Excise at manufacturing level and VAT at the time

of sale. In contrast, services attract only one levy i.e. Services tax on provision of taxable

services.

This distinction, in GST regime, would loose its importance as both goods and services

would be treated as par for taxing purposes. A transaction in goods and services for a

consideration would attract CGST and SGST. Also, the State Government now gets the

power to tax services and Central Government gets the power to levy tax at the

distribution and retail level.

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When and How?

When would GST be introduced?

As the news are unfolding, the proposed date April 2010 for implementing GST seems

unlikely. However any date near October 2010 or April 2011 seems unikely.

What about the legislations and the

rules? GST would be implemented with single CGST statute which would be applicable across India.

However, for SGST, each state will have its own statute. At present, the Government is working on

the draft legislation and the rules.

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Benefits and Future

Whether exports and SEZ would benefit? Exports would be zero rated, as currently they are. In case of SEZ, if the supply of goods or services is for

consumption in processing zone then it would be zero rated. Supply of goods and services from SEZ to

domestic are would be treated as domestic transaction and taxed.

What would be the rate? The Government is yet to freeze on the rates. As per the various news reports, the rate would be around

8% for CGST and 8% for SGST. However, the 13th Finance Commission has suggested a rate of 5% CGST

and 7% SGST.

There would be a lower rate for goods of special importance and a standard rate for other goods. Also,

precious metal would have special rate.H

owever, services will have single rate for CGST and SGST.

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Benefits and Future Contd..

What should the businesses do?

The business should:MAIN POINTS

CONSTITUTION (115th AMENDMENT) BILL

PROPOSES...

* Simultaneous power to be conferred upon

Parliament and state legislatures to make laws on

GST

* President to constitute a GST Council to be

headed by finance minister with members from

states

* Council to make recommendations the taxes to

be levied, goods to be exempted, GST rate

* Establishment of a GST Dispute Settlement

Authority to adjudicate any dispute or complaint

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Thank You

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constitution amendment bill for gst

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