GST-What's it.....! What's in store ......!

Constitutional Amendments - Matters to be decided by and suggestions / representations thereon to Council

Amendments

  • Empowers Parliament and State Legislatures to enact laws to impose GST (intrastate) (commonly known, respectively, as CGST and SGST);
  • Empowers Parliament to enact a law to impose interstate GST (commonly known as IGST);
  • Mandates sharing of revenue (IGST) and the matters relating thereto by and between Centre and States;
  • Consequential amendments including deletion of some entries in Seventh Schedule withdrawing power to impose tax on manufacturer, entry, sale and purchase of goods etc;
  • Constitution of GST Council and Matters on which it can make recommendations as well as provisions for conduct of its business;
  • Compensation to States for loss of revenue; and
  • Power to President to remove difficulties.

Recommendations which Council may make

Council is empowered to make recommendations on Matters specified in column (1) of Table below.

(It may not be out of place to mention that, presently, Empowered Committee of Finance Ministers (EC) takes decisions about GST. Constitution of EC is similar to that of proposed Council. It appears that Council may debate and adopt decisions already taken. Accordingly, hereafter, while discussing Status in respect of Matters to be considered by Council, decisions taken by EC may be taken into account.)

EC has taken some decisions on some matters (which Council may ratify). In respect of matters, like, taxes to be subsumed; place of supply; model law; rates of tax; threshold limit; exemptions affecting tax structure etc, Council has to take decisions (as is evident from broader details in following Table).

Matters Present status Affects?
Tax, cess and surcharge of Union or States to be subsumed Taxes proposed to be subsumed: please see overview Repeal and savings of old Statutes levying indirect taxes to be subsumed, in particular benefits etc.
Tax, cess and surcharge of Municipal Bodies to be subsumed Not clear. Octroi duty may be subsumed. Repeal and savings of old Statutes levying indirect taxes to be subsumed
Goods and services subject to tax Under debate Goods and services, which may be liable to tax
Goods and services exempt from tax Under debate Goods and services, which may not be liable to tax
Model law Presently, EC has circulated and invited suggestions Basis for drafting laws by Centre as well as States. Affects entire tax structure
Principles of levy As such, Principles, Policies, Procedures and Processes affecting tax structure not laid down, save draft of Model law Affects entire tax structure
Place of supply Covered in Model law Determination of interstate or intrastate supply and accordingly liability to: IGST, or CGST and SGST
Apportionment of GST revenue Under debate Sharing of revenue by and between Centre and States (in particular, IGST)
Threshold for tax Specified in Model law (apparently, still under debate, likely to be Rs.20 Lacs) When a business would become liable to tax (based on turnover exceeding specified limit)
Rates,
Floor rates,
Bands of GST
Under debate Applicable rate to taxable goods and service and its cost

It may affect, if different rates adopted, "unified tax rate", leading to multiple rates (within the band) of commodity in different states.
Special rates in case of natural calamity etc. Under debate Rate of tax
Special provision for specified states Under debate Can affect rate, exemption, threshold limit and other aspects of Tax
Any other matter relating to GST Under debate, if any Can affect any matter or aspects relating to Tax

Model law would be the basis for Central GST law and State GST laws (29) as also IGST. Thus, in all 31 Acts - CGST (1), IGST (1) and SGST (29) (apart from Union Territories' Provisions).

Thus, it may be appreciated that Council could be a forum for making various suggestions and representations in respect of the unified tax.

We once again urge you to seize the opportunity and convey your thoughts.

SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  | 

RECENT AMENDMENT