Silent Features of GST

Silent Features of GST

Silent Features of GST

1ApplicabilityGST is applicable to whole of India including Jammu and Kashmir.
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2LevyGST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services. The same is applicable on importation of service whether for consideration or not. Import of goods are subject to custom duty and GST.
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3Destination based consumption taxGST would be based on the principle of destination based consumption taxation as against the present principle of origin based taxation. Tax revenue will be levied and collected by the consuming State.
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4Dual GSTIt would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (SGST). Union territories without legislature would levy Union territory GST (UTGST). An Integrated GST (IGST) would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Centre so that the credit chain is not disrupted.
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5GST on importImport of goods would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties.
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  Import of services would be treated as inter-State supplies and would be subject to IGST.
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6ExportExports would be zero-rated.
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7Applicable to all goods and servicesGST would apply to all goods and services except Alcohol for human consumption. GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a date to be recommended by the GSTC. Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty.
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8Threshold exemptionA common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of Rs. 20 lac (Rs. 10 lac for special category States as specified in article 279A of the Constitution) would be exempt from GST. A compounding option (i.e. to pay tax at a flat rate without credits) would be available to small taxpayers (including to specified category of manufacturers and service providers) having an annual turnover of up to Rs. 75 lac or Rs. 50 lac in case of an eligible registered person, registered under section 25 of the said Act, in any following States, namely: – (i) Arunachal Pradesh, (ii) Assam, (iit) Manipur, (iv) Meghalaya, (v) Mizoram, (vi) Nagaland, (vii) Sikkim, (viii) Tripura, (ix) Himachal Pradesh: The threshold exemption and compounding scheme would be optional.
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9Reverse chargeThere is concept of reverse charge on notified supply and supply received from unregistered person.
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10Input tax creditInput Tax Credit (ITC) to be broad based by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business.
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11Tax deduction at sourceObligation on certain persons including Government departments, local authorities and Government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakhs and fifty thousand rupees (Rs. 2.5 lac).
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12Tax collection at sourceObligation on electronic commerce operators to collect ‘tax at source’, at such rate not exceeding one per cent (196) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.
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13Advance RulingAdvance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act.
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14Anti-profiteering clauseAn anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers.
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Silent Features of GST

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