We often hear that Government is working hard to see that it is able to introduce dual GST in country w.e.f. 1st April 2017 and at the same time a caveat that the target is stiff and there may be some time overrun.
The model GST law as released by the Government / Empowered Committee on GST is in public domain since mid June 2016. The proposed provisions only conveys the Government’s intention to levy GST in India and the manner in which it will be administered, levied , collected and implemented.
The aim is to create a GST with the widest possible base. The GST will replace the plethora of indirect taxes levied on goods with a single levy, which will help create a seamless national market for delivery of goods and services. The proposed GST Law should support the Government’s overall initiative of ease of doing business and offer a simplified tax regime.
The scope of IGST Model is that Centre would levy Integrated Goods and Services Tax (IGST) which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services.
The Bill has since been ratified by the Legislative Assemblies of Assam (12.08.2016), Bihar (16.08.2016), Jharkhand (18.08.2016), Himachal Pradesh ( 22.08.2016) and Chhattisgarh (22.08.2016) and as likely to be taken up for ratification by Delhi, Madhya Pradesh and Gujarat.
The nation is on the cusp of executing one of the most ambitious and remarkable tax reforms in its independent history. Implementing a new tax, encompassing both goods and services, to be implemented by the Centre, 29 States and 2 Union Territories
This section provides for the meaning and scope of supply of goods and services. There is no concept of supply of goods and services in the present law either in Service Tax or Central Excise. In the proposed law, supply of goods or services shall include the following:
Indian federal structure and constitutional powers of states allow both, the Union and States to levy taxes on the subjects in terms of Constitution of India. While there are powers to levy taxes by the Union alone and also States alone, there is also a concurrent list whereby both, states and centre can levy tax simultaneously.
The term ‘supply’ has been defined to mean the same as defined in section 3 of the CGST Act which provides for meaning and scope of supply.This section provides for the meaning and scope of supply of goods and services. There is no concept of supply of goods and services in the present law. In the proposed law, supply of goods or services shall include the following:
The scope of IGST Model is that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services. The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases.
