News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Service Tax »
 How waiver or fall in rent may impact your tax liability
 What to do if you get a scrutiny notice from the tax department
  How many income tax returns (ITRs) are picked up for scrutiny each year
  Notification u/s 138 of the Income Tax Act, 1961 in respect of Competition Commission of India
 You may have to file ITR even though your income might not be taxable
 Tax saving investment options for lower income slabs Use this formula to calculate post-tax return
 Deadline to claim tax benefits under Section 80C expires today ITR Filing FY 2019-20
  Tax on your gold and real estate investments
 Notification of Sovereign Wealth Fund under section 10(23FE) of the Income-tax Act, 1961
 ​Notification of Sovereign Wealth Fund under section 10(23FE) of the Income-tax Act, 1961
 No income tax refund yet? A step-by-step guide to checking status and reasons for delay

GST to be soon be a reality: Five things to know about the tax reform
April, 06th 2017

What is goods and services tax (GST)?

It is a destination-based tax on consumption of goods and services. This means the tax would accrue to the taxing authority, which has the jurisdiction over the place of consumption — also termed as place of supply.

How does it work?


It will be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

Which of the existing taxes are proposed to be subsumed under GST?

Central taxes:
Central excise duty
Duties of excise (Medicinal and Toilet Preparations)
Additional duties of excise (Goods of special importance)
Additional duties of excise (textiles and textile products)
Additional duties of customs (commonly known as CVD)
Special additional duty of customs (SAD)
Service tax
Central surcharges and cesses so far as they relate to supply of goods and services

State taxes:
State VAT
Central Sales Tax
Luxury Tax
Entry Tax (all forms)
Entertainment and amusement tax (except when levied by the local bodies)
Taxes on advertisements
Purchase tax
Taxes on lotteries, betting and gambling
State surcharges and cesses so far as they relate to supply of goods and services

Who is liable to pay GST?

Tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption — Rs20 lakh (Rs10 lakh for NE states) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit. The CGST/SGST is payable on all intra-state supply of goods and/or services and IGST is payable on all interstate supply of goods and/or services.

What would be the role of GST Council & GSTN?

A GST Council comprising the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers make recommendations to the Union and the States on all matters relating to GST. The CGST and SGST would be levied at rates to be jointly decided by the Centre and States. The rates would be notified on the recommendations of the GST Council. GSTN is a special purpose vehicle set up to cater for the needs of GST. The GSTN shall provide a shared IT infrastructure and services to central and state governments, tax payers and other stakeholders.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting