Salient Features of the GST Bill

The GST has changed the entire tax system in India. GST gives a huge boost to the economy in the form a single unified tax system in the country.

Know about GST

GST is a different form of taxation then the previous taxation system. It has revolutionised the entire taxation system. Previous tax systems were corrupted; on the other hand, GST is free of corruption. GST removes cascading tax effects. It has an easy way to register. There is a simple online procedure.

With GST portal one can get registered, returns, payments etc. Any compliance related to GST may be reported on this portal. Small businesses are little worried about GST, but composition scheme will help them out. Logistic efficiency is increased in GST. GST has lesser compliances than previous taxation system. The unorganised sectors are also regulated by GST now.

Key and salient features of GST bill

The GST changed the entire tax system in India. Below are the salient features of the GST. The GST rolls out with a unified tax reform and gives a huge boost to the economy in the form a single unified tax system in the country.

  1. Maximum twenty percent tax levied on central GST.
  2. Taxation in UTs of Chandigarh, Andaman and Nicobar island, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu have been taken care of, by The union territory GST bill.
  3. In case of inter-state supply of goods and services the integrated GST is to be collected and levied by the centre.
  4. Forty percent tax is provided by the IGST law.
  5. State GST is the mirror legislation of center CGST.
  6. CGST will not be applicable on Jammu and Kashmir.
  7. Small businesses have some concession on GST. CGST provides a tax less than or equal to one percent with annual turnover up to fifty lakhs.
  8. Bi-monthly compensation will be paid and fourteen percent growth rate is considered before an amount is calculated over the base year of 2015 to 2016.
  9. Hotels selling turnover if does not cross fifty lakhs the hotel selling liquor cannot gain the masterpiece scheme.
  10. Goods and service started attracting public by renting of buildings and leasing of lands and EMIs which is used to pay for purchasing houses under construction.
  11. GST applies to the supply of goods and services against the previous taxation concept on the sale of goods, manufacture of goods and provision of services.
  12. State and central GST mixed in a common taxation market. CGST means central GST which is levied by the center. SGST means state GST which is levied by the state. UTGST means union territories levied by union territory without a legislature.
  13. Following taxes are replaced by GST which is levied and collected by the center-
  • Central excise duty
  • Medicinal and toilet preparation (excise duty)
  • Goods and special importance (additional excise duty)
  • Textile and textile products (additional excise duty)
  • CVD (additional excise duty)
  • Special additional duty of customs
  • Service taxes
  • Related surcharges and cesses to supply of goods and services.
  1. State taxes subsumed in GST –
  • VAT
  • Central sales tax
  • Luxury tax
  • Purchase tax
  • Taxes on advertisement
  • Taxes on gambling and lotteries
  • Related surcharges and cesses of state to supply of goods and services.
  1. GST would not apply to alcohol.
  2. Centre levied central excise duty on tobacco products.
  3. Various persons get their electronic returns bill on different dates.
  4. The liability to pay GST will come up at the supply time.

 


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