GST applicable in India from 2017
GST applicable in India from 2017: The Central Government has already announced that the new GST Model Law will come into effect from 1st July, 2017.
Finally GST Bill passed after serious debate. On Today GST Bill is Passed in Rajya Sabha. GST Bill is Passed with 203 Votes. There are no vote against GST Bill. AIADMK walks out of the Rajya Sabha before the voting takes place.
When GST is Applicable – Modi Government Want to applicable GST Bill From 1st April 2017, Due to Some Legal Problems GST Bill is not applicable before 1st April 2017.
Please Note – GST is Not Applicable for CA Final and CA IPCC for Nov 2016 Exams and before applicable to GST in Any attempt ICAI Issued Separate notification from applicability of GST and from best knowledge GST is also not applicable for May 2017 Exams. Keep visit to our site if ICAI Issued any notification regarding GST Applicability in CA Exams.
Scroll down to check GST RATE for GOODS and SERVICES(Updated rate APPLIED FROM JULY 2017) and Download more files about GST Useful for Nov 2017 exam
GST applicable in India from 2017
When will GST be applicable – Know complete details
The Central Government has finally agreed to many demands of various states during the most successful meeting held so far on 15th December , 2014. This is claimed to be a win win deal and passing of first hurdle in rolling out the long awaited goods and service tax (GST) in India from April, 2016 .Now, the probability of introducing the amended bill in winters parliamentary session cannot be ruled out.
GST will ultimately create a unified market by ending up the multiple levies of taxes by the Centre and the States.Consequently, it will lower the costs for business and more revenue for the government.The states were afraid of loss of flexibility but it is said that this meeting has cleared many such fears .Broad agreement has been arrived between the Centre and various States.
For initial years , petroleum products will be outside the regime of GST. It is pertinent to note that many states get half of their taxes from such products only and for long it has had been a major concern for the states .
The said meeting was very significant for implementing GST in India in as much as the states have been allowed to to levy the following taxes in addition to GST :
1.Additional levy in lieu of entry tax will be subsumed into the combined tax on goods and services.
2. Transitionary tax :
manufacturing states like Gujarat and others can levy transitionary tax for one to two years.
In addition to the above, it was also assured that the Central Government will substantiate all the losses of states for a period of 5 years after the rolling out of GST in India.
Considering these major developments, we can say that very soon GST in India will be a dream come true . At the same , it is ironical to note that the original date was April 2010 for implementing GST in India but it took long 6 years to implement by making a political will to build a uniform taxed regime in India and now date for its implementation is April 2017.
GST applicable in India from 2017: What happens after the GST Bill is passed in Parliament:
The expected passage of the Constitution Amendment Bill in the Rajya Sabha on Wednesday to introduce a country-wide goods and services tax (GST) has now shifted the focus on the tax rates.
Under the new system, the states and the Centre will collect identical rates of taxes on goods and services. For instance, if 18% is the GST rate on a good across the country, the states and the Centre will get 9% each called the CGST and SGST rates.
The Centre will also levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one state to another.
There has been no agreement yet on rates of various goods and services, which remains a tricky issue. Last week state finance ministers told the Centre that the rate should provide relief to common citizens and small businessmen while not resulting in loss of revenue to states.
A panel under chief economic adviser Arvind Subramanian has recommended a revenue-neutral rate of 15-15.5%, with a standard rate of 17-18% be levied on most goods and all services.
A revenue-neutral rate is a single rate at which there will be no revenue loss to the centre and states in the GST regime.
The panel has recommended a three-tier rate structure wherein some essential goods will be taxed at a lower rate of 12%; so-called demerit goods such as luxury cars, aerated beverages, pan masala and tobacco products at a higher rate of 40%; and all remaining goods at a standard rate of 17-18%.
The National Institute of Public Finance and Policy (NIPFP) favoured a standard rate in the range of 23-25% if goods are taxed at three different rates—a special rate for precious metals, a lower merit rate for some important goods as well as a standard rate that will be applicable to most goods.
It had also suggested a GST rate of 18-19% in case of a single GST rate—that is all goods are taxed at the same rate.
The 13th Finance Commission headed by former finance secretary Vijay Kelkar had suggested 18% as a possible GST rate.
According to the Bill, passed in the Lok Sabha in May 2015, the rates were to be decided by a GST council headed by the central finance minister with state finance ministers as members.
While GST rate will not be capped in the Constitution Amendment Bill, the Congress has sought “legal ring-fencing” of the rates to insulate common citizens and small businesses from possible adverse impact from the high indirect tax rates. States also want a provision to ensure that their revenue is not hurt.
The government may suggest a ceiling in the “supplementary” or sub-ordinate legislations that will have to be passed after the main central law is enacted. These include the state GST law, the central GST law and the inter-state GST law.
These are enabling legislations that are necessary for rolling the new tax system.
Recommended Read : Complete details of GST Applicability in India from 2017
Download GST RATE for GOODS and SERVICES(Updated rate APPLIED FROM JULY 2017)
GST RATE for GOODS and SERVICES
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