GST Bill 2017 Key Features, Salient Features of GST Bill 2017

0

GST Bill 2017: Recently Lok Sabha passed four GST related Bills on March 29,2017 i.e. Central GST Bill,2017 2. Integrated GST Bill,2017 3. Union Territory GST Bill,2017 4. GST (Compensation to States) Bill,2017. The GST Bills have been introduced as Money Bills. Rajya Sabha may recommend amendments which may or may not be considered by the Lok Sabha which is being discussed on 05.04.2017. The Bills will finally move to the President for assent which are rapidly usher the new indirect tax regime, most likely from July 1, 2017.

The GST Council will soon roll out the fitment of goods into the rate slabs as well as the final rules relating to GST. State legislatures are also expected to enact to approve the SGST legislations in respective states. Jammu and Kashmir will have to pass special laws to introduce GST as the current Constitutional status does not mandate it.

GST Bill 2017 Key Features

GST Bill 2017 key Features

  1. Central GST provides for a maximum tax of 20 per cent
  2. Actual GST rates would however be a four-tier tax structure of 5, 12, 18 and 28 per cent as approved by the GST Council
  3. A Union Territory GST Bill will take care of taxation in UTs of Chandigarh, Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu
  4. A Bill on Integrated-GST to be levied and collected by the Centre on inter-state supply of goods and services, was also introduced in the Lok Sabha.
  5. The IGST law provides for a maximum tax of 40 per cent
  6. A fourth legislation called GST (Compensation to States) Bill, 2017 has also been introduced for mechanism for making good any loss of revenue of states from introduction of GST in first five years of rollout.
  7. Another mirror legislation of CGST, called State GST, will amalgamate all state taxes like VAT, will be levied by states and has to be approved by all state legislatures
  8. Together, CGST and SGST will enable the GST incidence of 40 per cent
  9. CGST law will not apply to Jammu and Kashmir
  10. The CGST Bill also provides for e-commerce companies to collect tax at source at a rate not exceeding 1 per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals
  11. To protect small businesses, the CGST provides for a tax of not more than 1 per centof turnover for manufacturers with annual turnover of up to Rs 50 lakh
  12. To ensure that benefit of lower taxes is passed on to consumers, an anti-profiteering measure has been incorporated in the law. It provides for constituting an Authority to examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him
  13. The law provides for arrest, ordered by no less than a Tax Commissioner, in case of suppression of any transaction or evading taxes. A person convicted is punishable up to 5 years of imprisonment and/or fine.
  14. Compensation will be paid bi-monthly and the amount due would be calculated after considering a 14 per cent growth rate in taxes over the base year of 2015- 16.
  15. Hotels selling liquor cannot avail the composition scheme even if the turnover does not cross Rs. 50 lakhs.
  16. Schedule I of GST Bill provides that gifts not exceeding Rs 50,000 in value in a financial year by an employer to an employee shall not be treated as supply of goods and services. However, use of assets and many other amenities like car drops, scholarship to employees’ children etc. may be covered under GST ambit.
  17. Leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax. Sale of land and buildings will be, however, out of the purview of GST

check also:

Key Provisions in GST for Manufacturers – Detailed Analysis

 

We hope you like our article. Please share this article on social Media Platforms like Facebook, Google Plus, Twitter, Whatsapp

LEAVE A REPLY

Please enter your comment!
Please enter your name here