All the four of GST (Goods and Service Tax) bills are passed by Lok Sabha. These four bills include The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017and it would be probably applicable from 1st July 2017.
As per the new rule, State and Center are allowed to charge up to 40% tax. Earlier people used to file returns on quarterly basis but now it has to be done every month. In case of fraud and wrong refund, there is a punishment for 5 year imprisonment.
This bill states that people should not be penalized for small mistakes. Those people, who have annual income under 20 lakhs, are not covered under this new GST rule. There are lots of things that need to be cleared and a much clear picture of GST will be seen once the law is finalized.
One country, One Tax
Any shopkeeper, selling goods without issuing the bill, would be penalized.
Central government is allowed to impose maximum tax of 20% on any good or service. The same limit is also applicable for State. It means that State and Central governments can collectively charge maximum 40% tax on any good and service. Petrol, Diesel and Gas are also covered in GST.
Government will ask for tax on the services provided E-commerce Companies. Every e-commerce company should have a registered office. If any E-commerce company doesn’t have office then its owner will pay tax.
In current scenario, it is not clearly mentioned whether to collect tax at place of supply or place of delivery.
In current scenario, there is no composition scheme for manufacturers. As per the new Rules, those manufactures who have annual turnover of 50 lakhs, they need to pay tax equivalent to 1% of manufacturer turnover and the suppliers need to pay tax up to 2.5% of their turnover.
If any organization gifts his employee worth more than 50K, it would be taxable. Free lunch, Car drop, scholarship to employees’ children will be included in it.
GST Will include following taxes:
Central Tax: Excise duty, additional excise duty, service tax, additional custom duty, special additional custom duty
State Tax: VAT, Entry Tax, Purchase Tax, Luxury Tax and Entertainment tax.
The four GST bills are passed by Lok Sabha. It now seems possible that government may meet its release deadline of July 1, 2017.