S MUNJAL & ASSOCIATES

Practicing Company Secretaries

GOODS AND SERVICE TAX (GST)

GST means Great Step by India towards Transformation

It means Great Steps towards Transparency

HISTORY of GST

1. To address the issues, Constitution (115th Amendment) Bill was introduced in Lok
Sabha on 22.03.2011.
2. The bill was lapsed with the dissolution of the 15th Lok Sabha.
3. The Constitution (122nd Amendment) Bill has now been introduced in the 16th Lok
Sabha on 19-12-2014.
4. GST would apply to all goods and services except Alcohol for human consumption.
5. GST on petroleum products would be applicable from a date to be recommended by
Goods and Service Tax Council.
6. Tobacco and Tobacco products would be subject to GST. A common threshold
exemption would apply to both CGST and SGST.
7. Tax payers with a turnover below it would be exempted from GST.
8. The threshold exemption and compounding provision would be optional.
9. The list of exempted goods and services would be kept to a minimum.
10. Exports would be zero rated. Credit of CGST paid on inputs may be used only for
paying CGST on output.
11. Credit of SGST paid on inputs may be used only for paying SGST.

SALIENT FEATURES OF GST

1. GST would be applicable on supply of goods or services as against the present

concept of tax on manufacture of goods.
2. GST would be a destination based tax as against the present concept of origin based
tax.
3. It would be a dual GST with Centre and States simultaneously levying it on a
common base.
4. GST levied by Centre would be called Central GST and that by States would be called
State GST.
5. An integrated GST would be levied on inter-state supply of goods or services.
6. Import of Goods or services would be treated as inter-state supplies and would be
subject to IGST.
7. CGST, SGST and IGST would be levied at rates to be mutually agreed upon by the
Centre and the States under aegis of GST Council.

Address: C-301 Surajmal Vihar, Delhi-110 092

Ph. No.: 9868051455
Email Id: csshikhamunjal@gmail.com
 S MUNJAL & ASSOCIATES
Practicing Company Secretaries

GST TO REPLACE FOLLOWING TAXES LEVIED BY CENTRE

1. Central Excise Duty

2. Duties of Excise (Medicinal and Toilet Preparations)
3. Additional duties of Excise (Goods of Special Importance)
4. Additional duties of Excise (Textiles and Textile Products)
5. Additional duties of Customs (Commonly known as CVD)
6. Special Additional Duty of Customs (SAD)
7. Service Tax

STATE TAXES SUBSUMED WITHIN GST

1. State VAT
2. Central Sales Tax
3. Purchase Tax
4. Luxury Tax
5. Entry Tax (All forms)
6. Entertainment Tax (not levied by the local bodies)
7. Taxes on advertisements
8. Taxes on lotteries, betting and gambling

ALL ABOUT GST

Introduction of GST a significant step in field of indirect tax reforms.

For consumers the biggest advantage would be reduction in the overall tax burden on
goods.
GST would make Indian products competitive in domestic and international markets.
Studies show that this would constantly spur economic growth.
This tax because of its transparent character, would be easier to administer.
The idea of GST was first mooted by Finance Minister P. Chidambaram in 2006-07.

Address: C-301 Surajmal Vihar, Delhi-110 092

Ph. No.: 9868051455
Email Id: csshikhamunjal@gmail.com