Goods and Service Tax – GST – By: – Nagesh Bajaj – Dated:- 3-8-2011 Last Replied Date:- 30-12-1899 – The comments of the Department of Revenue (DOR) on the First Discussion Paper on GST reflect the inclination of Centre on different contradicting issues related to Goods and Services Tax (GST). On some issues the DOR agrees with the recommendations of the Empowered Committee of State Finance ministers (here-in-after referred as EC) while on some varies with it. Comments of DOR on different significant issues and their consequences are as under: GST Model The DOR is agreed with the dual GST model having two components: CGST (Central GST) and SGST (State GST), recommended by the EC with appropriate binding mechanism to harmonise the various i
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and States. Accounts where CGST, SGST and IGST should be paid Ministry s view: CGST should be paid to the accounts of the Centre. SGST should be paid to the accounts of the states. IGST should be paid to the accounts of the Centre. Account-heads for all good and services would have an indication whether it relates to CGST or SGST (with identification of the state to whom the tax is to be credited). Input Tax Credit The Centre is agreed with the states recommendations on input tax credit. It means that the taxes paid against CGST should be allowed to be taken as input tax credit (ITC) for CGST and could be utilized only against the payment of Central GST. The same principle will be applicable for the SGST. A taxpayer or exporter would have t
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be prescribed in the respective legislation for CGST and SGST, to the extent feasible. It is proposed to prescribe a common registration form, common registration number, common return format, common service centers for acceptance of registration applications and return for Central GST and State GST. said Sushil Solanki, Commissioner, Central Excise. Threshold limit The DOR is of the view that there should be a uniform threshold for goods and services for both SGST and CGST. This annual turnover threshold could be ₹ 10 lakh or even more than that. The threshold should not apply to dealers and service providers who undertake inter-state supplies. A problem of dual control may arise and an opposition would come primarily from the trade
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