Important Facts About GST (Goods and Service Tax) 2016

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.