CONSTITUTIONAL AMENDMENT FOR PROPOSED GST- Part-2

Goods and Service Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 30-12-2014 Last Replied Date:- 30-12-1899 – Meaning of Goods / Services / GST The Constitutional Amendment Bill defines these terms- goods includes all materials, commodities, and articles; [article 366 (12)] services means anything other than goods: [article 366 (26A)] goods and services tax means any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption; [article 366 (12A)] Loss of Revenue / Compensation Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for implementation of the goods and services tax for such period which may extend to five years. GST Structure Th

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will be formed by the Parliament. The Central Government would also have power to grant exemption to any goods from this tax. The point to be noted here is that this tax is to be levied on goods only, thus the differentiation between goods and services would again resume significance. The proposed amendment in Article 271 restricts the power of the Central Government to levy any surcharge on the GST. Taxes to be subsumed in GST GST will subsume the following Central and State indirect taxes: Union Taxes State Taxes Central Excise Duty and additional excise duty, CVD and SAD on import of goods, Excise duty levied under Medicinal and Toilet Preparation (Excise Duties) Act, 1955,

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ambling and entertainment and amusement are covered under the GST. However, alcoholic liquor for human consumption has been kept out of GST ambit. Way forward Going by the present mood, the Government of the day feels that it may be able to introduce GST in India w.e.f. 1st April 2016, replacing a host of indirect taxes presently levied by the centre, states and local bodies. It hopes for the parliamentary nod (two-third majority) in the forthcoming Budget session in February, 2015. This is necessary as the Indian Constitution requires amendment to allow states to tax services and the centre to tax goods at the retail level and to provide legal framework for GST by providing for constitution of a GST Council and dispute settlement mechanism

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