salient features of the proposed gst system

 Salient features of the proposed GST system :

     The power to make laws in respect of supplies in the course of inter-state trade or commerce will remain with the  central government. The states will have the right to levy GST on intrastate transactions, including on services. 

 The administration of GST will be the responsibility of the GST Council, which will be the apex policy-making body for GST. Members of GST Council will comprise central and state ministers in charge of the finance portfolio.

 The threshold for levy of GST is a turnover of 1 million. For a taxpayer who conducts business in a northeastern state of India the threshold is RS 500,000.

 The central government will levy IGST on inter-state supply of goods and services. Import of goods will be subject to basic customs duty and IGST.

•  GST is defined as any tax on supply of goods and services (other than on alcohol for human consumption)
•  Central taxes such as central excise duty, additional excise duty, service tax, additional custom duty and special additional duty, as well as state- level taxes such as VAT or sales tax, central sales tax, entertainment tax. entry tax, purchase tax, luxury tax and octroi will be subsumed in GST. 
• A provision will be made for removing imposition of entry tax/ octroi across India.
•  Entertainment tax, imposed by states on movies, theatre, etc., will be subsumed in GST, but taxes on entertainment at panchayat, municipality or district level will continue. 
• Stamp duties, typically imposed on legal agreements by states, will continue to be levied.
•  The key benefits associated with GST are: 
• Offers a wider tax base, necessary for lowering tax rates and eliminating classification disputes 
• Eliminates the multiplicity of taxes and their cascading effects 
• Rationalizes the tax structure and simplifies compliance procedures
•  Automates compliance procedures to reduce errors and increase efficiency