Important Facts About GST 2016
(Goods and Service Tax)
☐ 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.