New York State Lottery

Join an e-Lottery Syndicate            Buy Lottery Tickets Online

Government of India has today unveiled first discussion document on products and services.

TPS has been the preferred mode taxation of goods and services has been introduced in over 140 countries. Most countries have rates of single GST, however, some countries like Canada and Brazil has a dual structure of GST. White Paper proposes a dual structure for GST in India. Standard GST rate in most countries vary between 15-25%.

The proposed structure of GST in India offers the dual structure. GST should have two central components of the GST and State GST. The model is realized by multiple statutes and for Central GST and SGST status of each state. However, it is proposed that the basic functionality of laws relating to the accrual tax, definition of the taxable event, taxable basis of classification, the basic value for the chargeability of tax must remain consistent. In addition, a uniform measurement procedure for collecting GST central GST and state should be prescribed.

Central GST is payable on account of central government while the State GST is payable on account of the state government. Separate account for those fees are kept to myself. Tax credit for entrance to the GST should be allowed to be used for payment of Central GST only and the ICC State GST can be used to pay only state GST. Cross use is not permitted except in cases of interstate delivery of goods and services.

For the taxation of interstate transactions, IGST model has been proposed. In the model of charge IGST Center, which would be more SGST CGST. The seller must pay IGST adjusted IGST available CGST and SGST. The dealer importer shall claim credit IGST paid. The appropriation of state must be transferred to another state using a compensation mechanism.

Under CGST, these taxes must be included:
Central Excise Duty
Additional Excise Duty
Excise duty on drugs and products Toilet preparation.
Service Tax
Additional Custom Duty (CVD)
Additional Special Duty (SAD)
Surcharges
Process.
Next state taxes must be included in the state of the GST:
VAT / Sales Tax
Entertainment tax
Luxury Tax
Taxes on Lotteries, gambling and Paris
State process and surcharges
Input tax not in lieu of grant.

Items Not covered by TPS:

The proposed GST structure keeps alcohol and petroleum products outside the scope of GST. The applicability GST on natural gas, the decision will be taken over time. Excise duties, currently levied by the States should not be affected. Products tobacco are subject to GST with tax credit. Center is authorized to levy an excise duty of the State GST on products tobacco. GST is levied on goods and services imported by the center. Input tax credit must be available and tax revenues go to the State based on the principle destination.

Existing central excise / sales tax concession scheme in the special zone is likely continue. Other projects in emergency shall be converted on a system of reimbursement in cash so that the chain on the credit of input tax is not disturbed.
GST rate should be fixed in due course of time. It is expected to be neutral. It is expected that the target date of May be satisfied for the implementation of GST. Threshold limit proposed for the center of the GST is 1.5 crores and the State GST is 10 lakhs. In addition, a system mixing GST is proposed for state revenues up to 50 lakhs.

To implement the model number changes legislative and constitutional amendment should be required. It is expected that the draft Central GST Act will be released in May during a few weeks for discussion.
Comments:

The proposed structure is certainly much better than the existing structure. However, a single structure of GST, with tax revenue divided between the Center and States would have been better for business. Even in the dual structure proposed, it will be desirable for Parliament to make law basic, even for the GST, which is possible under the present constitutional scheme. However, politics is not something that should be done but more on what could be done. Bearing in mind the country's federal structure, and maintaining financial independence without doubt this structure was needed. Overall a welcome step.

With the promise to keep you informed of any developments on the GST
Rajesh Kumar, Advocate

I am an advocate practicing in the field of Indirect Taxation (Central Excise, Customs, Service Tax), Corporate Taxation, Transfer pricing & International Taxation, FEMA and Foreign Trade Policy and other commercial & economic laws. I have experience in these areas, firstly as Indian Revenue Service officer and later as Consultant & Advocate to handle these matters. I head a full service law firm, in the name of Rajesh Kumar & Associates, who takes up matter in these areas.

New York State Lottery Ad| The MailRoom