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WWW.LEGALRAASTA.COMGST IN INDIAHi, In this video the Legalraasta team will teach our all about the GST In India its definition, minimum requirement and advantages.
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GOOD SERVICE TAXDefinition Of GST GST is commonly described as indirect, comprehensive,broad based consumption tax. The dual GST which would be implemented in India will subsume many consumption taxes.The objective is to subsume all those taxes that are currently levied on the sale of goods or provision of services by either central or state government. Subsumation of large number of taxes and other levies will allow free flow of larger pool of tax credits at both central and state level.Definition Of GST GST is commonly described as indirect, comprehensive,broad based consumption tax. The dual GST which would be implemented in India will subsume many consumption taxes.The objective is to subsume all those taxes that are currently levied on the sale of goods or provision of services by either central or state government. Subsumation of large number of taxes and other levies will allow free flow of larger pool of tax credits at both central and state level.
PRINCIPAL TAXPRINCIPLES OF TAXES SUBSUMATIONThe various Central, State and Local levies were examined to identify their possibility of being subsumed underGST. While identifying, the following principles were kept in mindTaxes or levies to be subsumed should be primarily in the nature ofindirect taxes, either on the supply of goods or on the supply of services.Taxes or levies to be subsumed should be part of the transaction chain which commences with import/ manufacture/ production of goods or provision of services at one end and the consumption of goods and services at the otherThe subsumation should result in free flow of tax credit in intra and inter-State levels.
CENTRAL TAX AND STATE TAX
CENTRAL TAXES TO BE SUBSUMED IN GSTOn application of the above principles and various papers which have been released in this regard, it is deduced that the followingCentral Taxesshould be, to begin with, subsumed under the Goods and Services Tax:Central Excise Duty (CENVAT)Service TaxSpecial Additional Duty of Customs - 4% (SAD)Central Sales Tax to be phased out.STATE TAXES TO BE SUBSUMED IN GSTFollowing State taxes and levies would be, to begin with, subsumed under GST:VAT / Sales tax.Luxury tax.Purchase Tax.Octroi and Entry Tax.
TREATMENT OF SPECIFIC GOODSTREATMENT OF SPECIFIC GOODS- The Central Government tabled the 122nd Constitution Amendment Bill, 2014 (Bill) on the introduction of Goods and Services Tax (GST) before the lower house of Parliament on December 19, 2014. On analysis of the Bill, the Bill contains the following treatment for the following specific goods.TAXE ON SUPPLY OF THE ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTIONTAX ON PETROLEUM CRUDE/ HIGH SPEED DIESEL/ MOTOR SPIRIT/ NATURAL GAS/ AVIATION TURBINE FUELTAX ON NEWSPAPERS AND ADVERTISEMENT THEREIN
TAXESTAX ON SUPPLYOF THE ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTIONAs per the proposed amendment to Constitution by the Constitution (122nd Amendment) Bill, 2014, supply of the alcoholic liquor for human consumption has been excluded from the definition of goods and service tax"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 consumptionTAX ON NEWSPAPERS AND ADVERTISEMENT THEREINGST would be capable of being levied on the sale of newspapers and advertisements therein. This would give the governments the access to substantial incremental revenues since this industry has historically been tax free in its entirety.
TAXES ON PETROL, GASTAX ON PETROLEUM CRUDE/ HIGH SPEED DIESEL/ MOTOR SPIRIT/ NATURAL GAS/ AVIATION TURBINE FUELThe States would continue as per the current laws to imposeValue Added Tax(VAT) on Petroleum Crude/ High Speed Diesel/ Motor Spirit/ Natural Gas/ Aviation Turbine Fuel on intra-state sales while inter-state sales would continue to attractCentral Sales Tax(CST).It is currently unclear from the schematics of the Bill whether States would fully discontinue collecting VAT/ CST on these products from this notified date, or whether the transition would be gradual. The Bill however also states that these products can be subjected to an excise duty imposed by the Centre; this levy would be imposed now and even after GST comes into force. Such duty can be in addition to the applicable VAT or GST imposed.
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