GST Discussion in brief

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*What is GST?*
‘G’ – Goods
‘S’ – Services
‘T’ – Tax
*“Goods and Service Tax (GST)* is a comprehensive tax levy on *manufacture, sale and consumption of goods and service* at a National level.

- It is a *Destination base consumption tax.* I.e Tax will be collected & Retained by that state in which Goods/Services are consumed.

- GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.”

- The 122nd Constitution Amendment Bill (‘Bill’) that will enable the introduction of Goods and Services Tax (GST), was passed in the Lok Sabha on 12 May 2015 and passed in Rajya Sabha on 3rd August, 2016.

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 *Taxes to Subsumed in GST:*

- *Central Taxes to Subsumed*
1. Central Excise duty (CENVAT)
2. Additional duties of excise
3. Excise duty levied under Medicinal & Toiletries Preparation Act.
4. Additional duties of customs (CVD & SAD)
5. Service Tax
6. Surcharges & Cess, SBC, KKC.

- *State Taxes to subsumed*
1. State VAT / Sales Tax
2. Central Sales Tax
3. Purchase Tax
4. Entertainment Tax
5. Luxury Tax
6. Entry Tax ( All forms)
7. Taxes on lottery, betting & gambling
8. Surcharges & Cess

- Only single Tax GST will be levied on all the Goods & Services. The above taxes will be abolished.

 *Applicability: of this GST Act*
(1) This Act may be called the *Central / State Goods and Services Tax Act, 2016.*
(2) It extends to the *whole of India (CGST Act) / Statewise (SGST Act) .*
(3) It shall come into force on such date as the Central or a State Government may, by
notification in the Official Gazette, appoint in this behalf.

While each State GST Act would extend to the relevant State, *the Central GST Act extends to the whole of India and includes Jammu & Kashmir (‘J&K’).*

*GST Act has*
-25 chapters,
-162 Sections,
-4 Schedules &
-1 GST Valuation Rule till now.

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Under GST Aggregate Turnover includes all Taxable, Non-taxable, Exempt Supplies, Exports of Goods and Services computed on All India basis for Single PAN. And Aggregate Turnover does not include Value of Supplies on which GST is payable on Reverse Charge basis and Value of Inward Supplies.

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Compiled By: SOURAV BAGARIA