Highlights of White Paper on GST

Highlights of GST Draft Guidelines are as under:

Central and state GST will apply on all transaction of goods and services      Tax paid as central GST will be allowed  to taken as input tax credit     State GST will also be allowed to be taken as input tax credit     Cross-utilisation of input tax credit not allowed   GST administration to be separate for State and Centre      GST payer to be allotted a unique ID number linked to PAN number   Tobacco products also subjected to GST      Alcoholic beverages to be kept out of GST and to be taxed at sales tax/VAT rate instead of GST Sales tax to be applied on petroleum products     No decision on excluding natural gas from GST      "Necessary items" to attract lower GST rate     Services to be taxed at a single rate for both centre and state     Small traders to be kept out of GST net     Businesses with annual turnover below Rs 10 lakh to be exempt from  State GST     Businesses below annual turnover of Rs 1.5 crore  to be exempt from central GST     GST to have composition/compounding  scheme  to avoid instances of double  taxation- Proposes compounding cut-off at Rs 50 lakh of gross annual turnover and floor rate of 0.5% across the states     Central and state GST to be  applied on goods and services imported     GST on imported goods and services to follow destination principle     Inter-state transactions  to  attract Centre and State GST- GST on inter-state transactions can be set off against future transactions

 

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
           +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
           vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx