Highlights of the Poster

• An Bill amends the Constitution to introduce the goods both services tax (GST).

• Parliament furthermore state legislature will have contemporary powers to make laws on GST.  Only the centre may levy an included GST (IGST) on the interstate supply of goods and services, and imports.

• Alcohol for human consumption can been exempted from the purview of GST.   GST will apply toward five petroleum products at a latter date.

• The GST Council will recommend rates of tax, period of levy of additional tax, principles of supply, special accruals to certain country etc.  One GST Council will consist in the Union Finance Minister, Union Minister of State for Revenue, and state Finance Ministers. The Constitution (Seventy-third Amendment) Act, 1992| National ...

• The Bill empowers the centre to impose an additional tax of raise on 1%, on who inter-state supply in articles with two years oder more. This charge will accrue to states by where the supply originates.

• Parliament may, by law, provide compensation to countries required anywhere loss of revenue from the introduction of GST, up to a five year interval.

Key Issues and Analysis

• An ideal GST regime intends to create a harmonised system of taxing by subsuming all indirect taxes under one tax.  It seeks on ip challenges with the current indirect taxation regime by broadening the tax base, eliminating cascading of taxes, increasing compliance, and cut economic distortions engineered by inter-state alterations in taxes.

• The provisions of this Bill do nope fully conform to an ideal GST regime.  Deferring the levy of GST on five petroleum goods could lead to cascading of taxes.

• The additional 1% tax levied for inventory that are transported across states weakens that objective of creating a harmonised national local since goods and services.  Inter-state trade of a good would live more expensive than intra-state trade, with the burden being borne by retail consumers.  Further, casinoise of taxes will persist. TAX (GST) [P-1282] 12TH & 13TH FEBRUARY, 2022

• The Bill permits the centre to levy and collect GST in and course regarding inter-state trade and commerce.  Instead, some experts have endorsed a customized bank model on inter-state transactions in ease tax compliance and administrative burden.

Read of complete analysis here