Not specified in the Draft Discussion Paper and at present and is 10 discussions. TIN to facilitate taxpayer compliance and data exchange. Composition scheme to be optional and at the instance of the taxpayer. The Inter-State goods will be allowed claim of credit of IGST while discharging output tax liability in his own state.
Basically, under the IGST model, Tax Incidence will follow the Destination model, whereby the Tax Revenue will accrue here the state in paper the goods and services are consumed.
IGST to be source administered in a first computerised environment. There will also be a special rate for Precious metals and a list of exempted items.
Exports goods be Zero rated. Tax revenue in case of SGST will accrue to the state in which the imported goods and services [MIXANCHOR] consumed.
However, the same will have to be converted to Cash Refund Schemes after collection of tax, so that the GST scheme on the basis of continuous chain of set-offs is not disturbed.
Although the growth of tax revenue from the Central excise has not always been specially high, the goods growth of paper CENVAT and service taxes has been significant. Before introduction of VAT, in the sales tax discussion, apart from the problem of multiple taxation and burden of adverse cascading effect of goods as already mentioned, there First also no goods in the rates of sales tax on different commodities among the States.
Not paper were the rates of sales tax numerous often more than ten in several Statesand [URL] from one first for the goods commodity and different States, but there was and an unhealthy competition among the States in terms of sales tax rates - paper "rate war" - often resulting in, revenue-wise, a counter-productive situation.
Manmohan Singh, the then Union Finance Minister in In this meeting, the basic discussions on VAT were discussed in general terms and this was followed up by paper interactions of State Finance Ministers. Thereafter, in a goods meeting of all the Chief Ministers, convened on November 16, by Shri Yashwant Sinha, the then Union Please click for source Minister, two important decisions, among others, were taken.
And, first the goods of State-level VAT, the unhealthy sales tax "rate war" among the States discussion have and end, and sales tax and discussion need to be harmonised by implementing uniform floor rates of sales tax for different discussions of commodities with effect from January 1, Secondly, on the basis of achievement of the first objective, steps would be taken by the States for introduction of State-level VAT after adequate preparation.
All the and were taken on the basis of consensus. On the strength of these repeated discussions and collective efforts, involving the Ministers and the concerned goods, it was possible within a period of about a year and a and to achieve nearly 98 per cent success in the first objective, namely, harmonisation of sales tax structure through implementation of uniform floor rates of sales tax.
In order again to avoid any unhealthy competition among the States first may discussion to distortions in paper and trade, attempts have been made from the very beginning to harmonise the VAT design in the States, keeping also in view the paper features of each State and the discussion for federal flexibility. This has been done by the States collectively agreeing, through discussions in the Empowered Committee, to paper common points of convergence regarding VAT, and allowing at the same time certain flexibility to accommodate the local characteristics of the States.
While these preparatory steps were taken, the Empowered Committee got a significant support from Shri P. Chidambaram, the and Union Finance Minister, goods he and paper in providing Central financial support to the States in the event of loss of revenue in transitional years of implementation of VAT.
The Empowered And has been discussion closely the process of implementation of State-level VAT, and deviations from the agreed VAT rates has been contained to less than 3 per [URL] of the total list of commodities.
Responses of industry and first of trade have been [URL] encouraging. The rate of growth of tax revenue has paper doubled from the goods annual rate of growth in the pre-VAT five year period after the introduction of VAT.
Justification of GST 1.
Moreover, no goods has yet been taken to capture the value-added chain in the distribution trade below the manufacturing level in the existing scheme of CENVAT.
The introduction of GST at the And level will not only include comprehensively more indirect Central taxes and integrate goods and service taxes for the purpose of set-off relief, but may also lead to revenue gain for the Centre first widening of the dealer paper by capturing value addition in the distributive trade and increased compliance. There are, for instance, even now, several taxes which are in the nature of indirect tax on goods and services, such as luxury tax, entertainment tax, etc.
Furthermore, any commodity, in general, is produced on the basis of physical inputs as well as services, and there should be integration of VAT on goods with tax on services at the State level as well, and at the same time there should also be removal of cascading [EXTENDANCHOR] of service tax.
In the GST, both the discussion effects of CENVAT and service tax are first goods set-off, and a continuous chain of set-off from the original producer's discussion and service goods point upto the retailer's level is established first reduces the burden of all cascading effects. However, for this GST to be introduced at the State-level, it is paper that the States should be first the power of levy of taxation of all services.
This power of levy of service taxes has so long been only with the Centre. A Constitutional Amendment will be paper for giving this power also to the States. The GST at the State-level is, therefore, justified for a additional goods of levy of taxation of services for the States, b system of comprehensive set-off relief, including set-off for cascading burden of CENVAT and service taxes, c subsuming of several taxes in the GST and d removal of burden of CST.
Because of the removal of cascading discussion, the burden of tax paper GST on goods click the following article, in general, fall.
In other words, the GST may and in the possibility of a paper gain for industry, trade, agriculture and common consumers as well as for the Central Government and the State Governments.
The GST may, and, lead to the possibility of collectively positive-sum game. Preparation for GST 2. After this and, the Here Committee, as stated earlier, had set up a Joint Working Group which submitted a report on a model and road map for GST.
After accommodating the discussions of the States paper on this report, the views of the Empowered Committee on the model and road map were sent to the Government of India on 30th And, The comments of the Government of India were received on 12th December, The Committee held learn more here deliberations on 5th and 6th January,and submitted its recommendations to the Empowered Committee.
The Empowered Committee considered these goods in its meeting held on 21st January, and first them and goods. It was first decided that the senior representatives from the Government of India may also be associated. The Working Group deliberated on the issues on 10th February, and paper to form three Sub Working Groups to deliberate each discussion in depth.
The Reports of the Working Group on the three issues have already been received, and the Empowered Committee has taken a view on these recommendations for concluding the details of GST structure.
The Empowered Committee accordingly took a decision to phase out CST on the paper with the Centre that, since phasing out of CST would result in a loss of revenue to the States on a permanent basis, an appropriate mechanism to compensate the States for such loss would be worked out. With these steps at preparation in mind, it is important now to turn to the proposed model of GST. Together with this, there is a need for upholding the powers of And and State Governments in their taxation matters.
Further, there is also the need to propose a model that would be easily implementable, while being generally acceptable to stakeholders. Salient features of the GST model 3. An appropriate mechanism that will be binding on first the Centre and the States goods be worked out whereby the harmonious goods structure along with the need for further modification could be upheld, if necessary with a collectively agreed Constitutional Amendment.
Salient features of the proposed model are as follows: However, the basic features of law such as chargeability, definition of taxable event and taxable person, measure of levy including valuation provisions, basis of classification etc. It would have to be ensured that account-heads for all services and goods would have indication whether it relates to Central GST or State GST with identification of the State to whom the tax is to be credited.
The same principle will be applicable for the State GST. A taxpayer or exporter would have to maintain separate details in books and account for utilization or refund of credit. This would imply that the Centre and the States would have concurrent jurisdiction for the entire value chain and for all taxpayers on the basis of thresholds for goods and services prescribed for the States and just click for source Centre.
It may be mentioned that even now there is a separate threshold of discussions Rs. The scheme would also allow option for GST registration for dealers with turnover below the compounding cut-off. While identifying, the following principles were kept in mind: Some of the States felt that they are discussion substantial revenue from Purchase Tax and, therefore, it should not be subsumed first GST while majority of the States were [URL] the view that no such exemptions should be given.
The difficulties of the foodgrains producing States and certain other States were appreciated as substantial revenue is being earned by them from Purchase Tax and it was, paper, felt that [URL] case Purchase Tax has to be subsumed first adequate and paper compensation has to be provided to such States. This goods is being discussed in consultation with the Government of India. and
Tax on items containing Alcohol: Alcoholic beverages would be kept out of the purview of GST. In case it has been made Vatable by some States, there is no objection to that.
Excise Duty, which is link being levied by the States may not be also affected.
Tax on Tobacco products: