Page 44 - Banking Finance June 2017

ARTICLE

four supporting GST legislations- i) Compensation Law Similarly, IGST would be levied at 40% at its peak rate
Bill, 2017, ii) Central-GST (CGST) Bill, 2017, iii) Inte- as pegged,
grated-GST (IGST) Bill, 2017 and iv) Union Territory GST
9. GST Council in its meeting decided 4 tier structure of
(UTGST) Bill, 2017. On 31st March 2017 the GST Coun-
rates 5%, 12%, 18% and 28% (with cesses) in addition
cil approved five amended rules for the Goods and Ser-
to zero rated and exempted goods or services.
vices Tax and gave a "tentative" nod to the remaining
four rules. 10. GST would apply to all services barring a few specified
or to be specified by the Government.
4. GST is applicable on the supply of goods or services as
against the present concept of tax on the manufacture 11. GST would replace the following taxes currently levied
or sale of goods or provision of services. and collected by the Centre:
Y Central Excise Duty
5. GST is a tax based on destination of consumption of
goods and services. This means that tax would accrue Y Duties of Excise (Medicinal and Toilet Preparations)
to the State or the Union Territory where the consump- Y Additional Duties of Excise (Goods of Special Impor-
tion takes place. tance)
6. It is a dual GST with the Centre and States simulta- Y Additional Duties of Excise (Textiles and Textile Prod-
neously levying tax on a common tax base and form. ucts)
GST to be levied by the Centre on intra-State supply of
Y Additional Duties of Customs (commonly known as
goods or services would be called "CGST" and that to
CVD)
be levied by the States with their respective legislature
and Union Territories would be called " SGST" and Y Special Additional Duty of Customs (SAD)
UTGST" respectively. IGST is GST charged for move-
Y Service Tax
ment of goods & services from one state to another.
Y Central Surcharges and Cesses so far as they relate
7. GST would apply to all goods other than alcoholic liquor
to supply of goods and services
for human consumption and five petroleum products,
viz. petroleum crude, motor spirit (petrol), high speed 12. State taxes that would be subsumed under the GST are
diesel, natural gas and aviation turbine fuel. Y State VAT
8. The Central GST (CGST) law has marked the peak rate Y Central Sales Tax
at 20% and a similar rate has been prescribed in the Y Luxury Tax
State GST (SGST) law, which takes the max rate to 40%
Y Entry Tax (all forms)
which will come into force only in financial exigencies.
Y Entertainment and Amusement Tax (except when
levied by the local bodies)

Y Taxes on advertisements
Y Purchase Tax
Y Taxes on lotteries, betting and gambling
Y State Surcharges and Cesses so far as they relate
to supply of goods and services
13. The list of exempted goods and services would be com-
mon for the Centre and the States.
14. Taxpayers with an aggregate turnover in a financial
year up to Rs.20 lakhs would be exempt from tax.

Aggregate turnover shall be computed on all India basis.

44 | 2017 | JUNE | BANKING FINANCE

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