Salient Features of GST

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The Following are the Salient Features of GST:

• Introduction of GST a significant step in field of indirect tax reforms.
• For consumers, the biggest advantage would be reduction in the overall tax burden on goods.
• GST would make Indian products competitive in domestic and international markets.
  Studies show that this would instantly spur economic growth.
• This tax, because of its transparent character, would be easier to administer.
• The idea of GST was first mooted by Fmr Finance Minister P Chidambaran in 2006-07.
• To address the issues, Constitution (115th Amendment) Bill was introduced in Lok Sabha on 22.03.2011.
• The Bill Lapsed with the dissolution of the 15th Lok Sabha.
• The Constitution (122nd Amendment) Bill has now been introduced in the 16th Lok Sabha on 19.12.2014.
• GST would apply to all goods and services except Alcohol for human consumption.
• GST on petroleum products would be applicable from a date to be recommended by Goods & Services Tax Council.
• Tobacco and tobacco products would be subject to GST.
• A common threshold exemption would apply to both CGST and SGST.
• Taxpayers with a turnover below it would be exempted from GST.
• The threshold exemption and compounding provision would be optional.
• The list of exempted goods and services would be kept to a minimum.
• Exports would be zero-rated.
• Credit of CGST paid on inputs may be used only for paying CGST on the output.
• Credit of SGST pain on inputs may be used only for paying SGST on the output.

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Written By: SOURAV BAGARIA