The entire business fraternity is looking forward for the much awaited GST Bill, the bill is inching towards reality. In yet another milestone, the GST Council in it’s 11th meeting have finalized the draft for GST Bill which is expected to be presented in front of the Indian Parliament, soon.
By Faiz Askari
NEW DELHI: The entire business fraternity is looking forward for the much awaited GST Bill, the bill is inching towards reality. In yet another milestone, the GST Council in it’s 11th meeting have finalized the draft for GST Bill which is expected to be presented in front of the Indian Parliament, soon.
Click Here For More GST News & Views
Key Highlights of the Cleared Draft are:
- A state-wise single registration for a taxpayer for filing returns, paying taxes and to fulfill other compliance requirements. Most of the compliance requirements would be fulfilled online, thus leaving very little room for physical interface between the taxpayer and the tax official.
- A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the country and pay the applicable taxes on them. Such taxes can be Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST).
- A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not taking registration is Rs 10 lakh.
- A business entity with turnover up to Rs 50 lakh can avail the benefit of a composition scheme under which it has to pay a much lower rate of tax and has to fulfil very minimal compliance requirements. The Composition Scheme is available for all traders, select manufacturing sectors and for restaurants in the services sector.
- In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course or furtherance of business, except on a few items listed in the Law.
- In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State Law, it has been provided that the ITC entitlement arising out of taxes paid under the Central Law can be cross-utilised for payment of taxes under the laws of the states or union territories.
- For example, a taxpayer can use the ITC accruing to him due to payment of IGST to discharge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Such payments are to be made in a pre-defined order.