Sunday, 15 January 2017

Important Facts About GST (Goods and Service Tax) 2016

Important Facts About GST 2016
(Goods and Service Tax)

Important Facts About GST (Goods and Service Tax) 2016


On Aug 3, 2016 Rajya Sabha and Lok Sabha on Aug 8, 2016 passed 122nd Amendment Bill on GST.

 Salient Features of GST 2016

  • Uniform establishment of taxes in India
  • States will collect service taxes.
  • Centre will collect Integrated Goods & Services Tax (IGST) on inter-state suppliers.
  • It will cover nearly 16 types of Centre's and State's taxes.

 General Impact on India Market
  • It will become a common market facilitating good's movement from one state to others.
  • Simplify tax structure and regime.
  • No cascading chain of taxes.
  • Widens tax base and collection
 GST's Price Impact: It is expected manufacturing goods will be cheaper. On its first year of implementation inflation may rise and some services may be costlier. Logistics and FMCG sector will benefit.

 Suggested tax rates are 12%, 17-18% and 40%

 Real Estate, Petroleum and Alcohol industries are excluded from GST initially.

 GSTN Pvt Ltd., a branch of Infosys Ltd. is developing and providing training on GST Software and hardware.

 GST Council headed by Finance Minister will setup and and it will be represented by States' nominees. The council will provide recommendations on GST rates, exemptions and limits.
 

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