Goods and Service Tax – GST – By: – Arun Kumar Singh – Dated:- 9-12-2009 Last Replied Date:- 30-12-1899 – The proposed GST structure in India proposes dual structure. GST shall have two components- Central GST and State GST. The model shall be implemented by multiple statute- one for Central GST and SGST statute for every state. However, it is proposed that basic feature of laws related to chargeability of tax, definition of taxable event, taxable person, basis of classification, basis of value for chargeability of tax shall remain uniform. Further, to an extent uniform procedure for collection of both Central GST and State GST shall be prescribed. Central GST shall be payable to the account of Central Government whereas State GST shall be
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be subsumed: Central Excise Duty Additional Excise Duties Excise duty levied on medicinal and toiletries preparation. Service Tax Additional Custom Duty (CVD) Special Additional duty (SAD) Surcharges Cesses. Following state taxes shall be subsumed in state GST: VAT/Sales Tax Entertainment Tax Luxury Tax Taxes on lottery, betting and gambling State cesses and surcharges Entry tax not in lieu of octroi. Items not covered under GST: The proposed GST Structure keeps liquor and petroleum products out of the purview of GST. Regarding applicability of GST on natural gas, decision will be taken in course of time. Excise duty, presently levied by the states shall not be affected. Tobacco products shall be subject to GST with input tax credit. Centr
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te GST is being proposed for turnover till 50 lakhs. To implement the model various legislative changes and constitutional amendment shall be required. It is expected that draft Central GST Act may be released in course of a few weeks for discussion. Comments: The proposed structure is certainly far better than the existing structure. However, a single GST structure, with tax revenue distributed between Centre & states would have been better for trade. Even in the proposed dual structure, it will be advisable for parliament to make basic law even for State GST, which is possible under the present Constitutional scheme. Nevertheless, politics is not something what ought to be done but it is more about what could be done. Keeping in mind
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