Transcript GST-THE CONSTITUTION (122ND Amendment Bill),2014

“GST BILL” -THE CONSTITUTION
(122ND Amendment Bill),2014
BY CA SRINIVASAN ANAND G
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GST BILL
“GST Bill” is a misnomer for this Bill.
This Bill does not propose to introduce a law to levy
GST.
This Bill proposes to amend the Constitution to:
confer concurrent taxing powers on Centre & the
States to make laws to levy GST
GST will come into force only when
this Bill is passed to and
under amended Constitution the Centre & states
make laws imposing GST
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Definition of “Services”
“Services” defined by proposed new clause
(26A) to be inserted into Article 366
“Services” means anything other than goods
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Features of GST
One indirect tax (GST) to replace a number of Central
and state indirect taxes levied at present
Intention is to remove cascading effect of multiple
indirect taxes
Proposed GST aims at creating a common national
market for goods and services
Concurrent taxing powers to Centre & States to make
laws for levying GST
GST to cover all goods/services except alcoholic liquor
for human consumption
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Central Indirect Taxes that GST will
replace
Central Excise Duty
Additional Excise Duties
Excise Duty levied under Medicinal and Toilet
Preparations (Excise Duties) Act,1955
Service Tax
Additional Customs Duty (Countervailing Duty)
Special Additional Duty of Customs
Central surcharges and cesses relating to supply of
goods and services
CST
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State taxes that proposed GST will replace
State VAT/sales tax
Entertainment Tax (other than the taxes levied by local
bodies)
CST (levied by the Centre & collected by States)
Octroi
Entry Tax
Purchase Tax
Luxury Tax
Taxes on lottery, betting and gambling
State surcharges & cesses relating to supply of goods
& services
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Will Central Excise Duty/State VAT go
on introduction of GST?
Yes. CED to go on all goods except petroleum &
petroleum products and tobacco and tobacco products
.Power of Centre under Entry 84 to impose CED to be
limited to these products.
State VAT to go all goods except petroleum & petroleum
products & alcoholic liquor for human consumption.
Power of States under Entry 54 to impose VAT to be
limited to these products.
Petroleum & petroleum products will not come under
GST net till a date notified on the recommendation of
the GST Council. Presumably, CED/State VAT to apply
on these till then.
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Will Service tax go on introduction of
GST ?
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Service Tax (presently imposed by Centre) will
go
Entry 92C “Tax on Services” in Union List ie
List I of Seventh Schedule proposed to be
omitted
All services will be under the GST net
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Objects of the Constitution (122nd Amdt)
Bill
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subsuming of various Central indirect taxes and levies
into GST;
subsuming of State indirect taxes into GST;
dispensing with the concept of “declared goods’
levy of Integrated GST on inter-State transactions of
goods & services;
levy of an additional tax on supply of goods, not
exceeding 1%,in the course of inter-State trade or
commerce to be collected by the Govt of India for a
period of two years, and assigned to the States from
where the supply originates;
compensation to the States for loss of revenue on
account of GST for a period upto 5 years;
creation of GST Council to examine issues relating to
GST and make recommendations to the Union &the
States on parameters like rates, model GST laws,
exemption list & threshold limits
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