The Constitution Amendment Bill to implement GST, was passed by 352 votes against 37 and the government rejected the opposition demand of referring it to a standing committee.
A hefty voting session was held whereby scores of amendments were held and the Finance Minister Arun Jaitley assured that the states would secure a compensation for any loss of revenue as a result of levying the GST. Mr Jaitley went on to state that the new version of GST will call for a revised indirect tax rate that would be far lesser than 27% as was advocated by the expert panel earlier.
The following are the noticeable cum fundamental features of the proposed GST (Goods and Services Tax) that was approved by the lower house of Parliament, i.e The Lok Sabha by way of an amendment to the Constitution:
1. GST, or Goods and Services Tax, will cover central indirect taxes like excise duty, countervailing duty and service tax, as also state levies like value added tax, octroi and entry tax, luxury tax.
2. The end user will bear only the GST that would be charged by the last dealer in the supply chain, but the benefits will set-off benefits at all the previous stages.
3. But the petroleum products, alcohol for human consumption and tobacco are not considered for the scope of GST and this is largely considered as an incentive to appease the states,
4. The present concept of GST will comprise of two main components - Central GST that would be posed by the Central Government and State GST that the states would levy.
5. Nevertheless, only the Center is empowered to impose and to collect GST on supplies in the context of inter-state trade or commerce. The center and the states would get equal share in the tax that would thus be collected but according to terms that the Parliament would specify after consulting the GST Council.
6. The GST Council would be chaired by the Union Finance Minister and the members of council shall comprise of minister of state of finance and the finance minister from each state.
7. The GST bill thus has a scope for an additional tax that would not exceed beyond 1% but on goods that would be traded between states. Such tax would be imposed and collected by the Union government to compensate the states at least for a period of two years or as would be determined by the GST Council, but such a tax would be for states so as to cover the losses that would be suffered as a result of the imposition of GST.
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A hefty voting session was held whereby scores of amendments were held and the Finance Minister Arun Jaitley assured that the states would secure a compensation for any loss of revenue as a result of levying the GST. Mr Jaitley went on to state that the new version of GST will call for a revised indirect tax rate that would be far lesser than 27% as was advocated by the expert panel earlier.
The following are the noticeable cum fundamental features of the proposed GST (Goods and Services Tax) that was approved by the lower house of Parliament, i.e The Lok Sabha by way of an amendment to the Constitution:
1. GST, or Goods and Services Tax, will cover central indirect taxes like excise duty, countervailing duty and service tax, as also state levies like value added tax, octroi and entry tax, luxury tax.
2. The end user will bear only the GST that would be charged by the last dealer in the supply chain, but the benefits will set-off benefits at all the previous stages.
3. But the petroleum products, alcohol for human consumption and tobacco are not considered for the scope of GST and this is largely considered as an incentive to appease the states,
4. The present concept of GST will comprise of two main components - Central GST that would be posed by the Central Government and State GST that the states would levy.
5. Nevertheless, only the Center is empowered to impose and to collect GST on supplies in the context of inter-state trade or commerce. The center and the states would get equal share in the tax that would thus be collected but according to terms that the Parliament would specify after consulting the GST Council.
6. The GST Council would be chaired by the Union Finance Minister and the members of council shall comprise of minister of state of finance and the finance minister from each state.
7. The GST bill thus has a scope for an additional tax that would not exceed beyond 1% but on goods that would be traded between states. Such tax would be imposed and collected by the Union government to compensate the states at least for a period of two years or as would be determined by the GST Council, but such a tax would be for states so as to cover the losses that would be suffered as a result of the imposition of GST.
Tag: Digital Marketing Digital marketing institute
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