Proposed System of GST & Its features

Pro­posed GST Tax Structure:

There will be Three Type of GST: viz, Cen­tral Goods & Ser­vice Tax (CGST), State Goods & Ser­vice Tax (SGST) & Inte­grat­ed Goods & Ser­vice Tax (IGST)

Intra-state Tax­able Sup­ply: Excise & Ser­vice Tax will be known as CGST & Local VAT & oth­er Tax­es will be known as SGST

Inter-State Tax­able Sup­ply: Instead of IGST will be charged & the rate will be approx. sum total of CGST & SGS

Import from India: In Cus­toms Duty in place of CVD & SAD IGST will be charged.

Pro­posed Features:

• For Exempt­ed goods & ser­vices ‑There will be a com­mon list of CGST & SGST
• CGST will be col­lect­ed by Cen­tre & SGST will be col­lect­ed by State
• IGST will be charged in case of Inter state sup­ply of goods & ser­vices & Import
• Export of Goods & Ser­vices will be zero rated
• Fol­low­ing tax­es will be Sub­sumed with imple­men­ta­tion of GST 
  • Charged by Cen­tre: Excise Duty, Cus­toms Duty & Ser­vice Tax
  • Charged by State: VAT/ CST, Enter­tain­ment Tax, Lux­u­ry Tax, Entry Tax, Tax­es on Lot­tery, Bet­ting & Gambling
• All goods & ser­vices will be cov­ered under GST except: 
  • Alco­hol- State excise & Vat will be charged
  • Elec­tric­i­ty – Elec­tric­i­ty Duty will be charged
  • Real Estate- Stamp Duty & Prop­er­ty Tax­es will be charged
  • Petro­le­um Products
• Cen­tral Excise will be charged along with GST in case of Tobac­co products
• Four type of GST Rate will be there: 
  • Mer­it rate for essen­tial goods & Services
  • Stan­dard Rate for Goods & Services
  • Spe­cial rate for pre­cious Metals
  • NIL Rate
• Ser­vices will become a bit cost­lier since instead of Ser­vice Tax CGST & SGST both will be charged but input cred­it will be avail­able to the man­u­fac­tur­ers & Dealers.