* GST is a comprehensive tax on manufacture, sale and consumption of goods and services at a national level and aimed to remove the cascading effect of tax, standardise the procedural aspect and create a single, unified Indian market to strengthen the economy. * Its effective implementation would change the tax administration and the manner of conducting business in India. In short, the GST is likely to be a game changer for the industry. ITS APPLICABILITY
* GST is a tax on supply of goods and services.
* It is proposed to implement dual GST in India.
* GST would be applicable to all the industry except alcohol, petroleum products and power. * However, gradually, these sectors may also be included within the ambit of GST.
WHEN IS GST LIKELY TO BE IMPLEMENTED?
* Considering the progress made till date, implementation before 1st April 2013 seems unlikely. * The Industry expects the Finance Minister to come up with a certain date for implementation of GST in the Union Budget 2012-13. WHAT COULD BE THE RATE OF GST?
* The objective of GST was to have one single rate across the country for all goods and services. * However, after constant deliberation between the States and the Centre, it was decided to have two rates for goods i.e. concessional and standard rate along with a list of exempted goods. * The standard and concessional rate of GST on goods for the first three years from the date of implementation of GST would be Services are however likely to be taxed @16% (8+8) under the GST regime. DIFFERENCE BETWEEN GST AND THE CURRENT INDIRECT TAX REGIME?
* With the introduction of GST, the taxable event would shift to supply of goods and services. Thus, even branch transfers would be subject to GST. * Under GST, the cascading effect, that is, tax on tax, would be removed. The base for calculating SGST and CGST would remain the same unlike currently where VAT is payable on sale price plus the excise duty....