DIRECT TAXES & INDIRECT TAXES (GST) - TYBCOM (Sem-6) Manan Prakashan
CHAPTER - 1 Introduction
Index
- Basic,
- Need for GST,
- Introduction,
- Legislative,
- Framework for Implementing
I.
BASICS FOR TAXATION
1) DIRECT TAXES & INDIRECT TAXES
Tax is the price which we pay for a civilized society as govt. needs funds for various purposes like maintenance of law and order, defense, social / health / essential services and supply. Govt obtains funds from various sources, out of which one of the main sources is taxation. Taxes are broadly classified as Direct Taxes and Indirect Taxes
Difference between Direct Taxes and Indirect
Taxes
|
SR. NO. |
PARTICULARS |
DIRECT TAXES |
INDIRECT TAXES |
|
1 |
Authority |
Central Board of Direct Taxes (CBDT) |
Central
Board of Indirect Taxes and Customs |
|
2 |
Types of Taxes |
Income Tax |
Major Taxes: GST Central Tax - Customs Duty Others: State Taxes – Stamp Duty, Professional
Tax, etc.
(1.7.2017 – GST subsumed 17 other
indirect taxes) |
|
3 |
Imposed on |
Income, Profits, Wealth, Property,
Business, Profession, etc of ‘Persons’ |
Goods & Services |
|
4 |
Incidence or the liability or
responsibility to pay the tax |
‘Persons’ (as per IT Act) who earn or own
the above |
Importer or Supplier of goods and
services |
|
5 |
Burden of the tax is borne by |
‘Persons’ (as per IT Act) who earn or own
the above |
End consumer |
|
6 |
Amount of Tax payable |
Depends on Income, Profits etc generated.
The quantum of the tax depends on the income tax slab of the taxpayer. |
Supply of goods & services are taxed
irrespective of the ability of the purchaser i.e. whether rich or poor, all
pay indirect taxes equally |
|
7 |
Nature of Tax |
Progressive. Direct Tax Rate is not flat
– higher the income, higher the rate |
Regressive. Indirect Taxes are flat or fixed.
The poor and the rich pay the same taxes. |
|
8 |
Timing of Payment |
Direct taxes become payable AFTER the
income reaches the tax payer |
Indirect taxes are payable even before
the goods / services reaches the end consumer |
|
9 |
Transferability of tax |
NO |
YES |
|
10 |
Intermediary |
NO. Tax payer pays directly to Govt. |
YES. Tax payer pays indirectly to Govt.
through intermediaries like importers, suppliers, etc. |
|
11 |
Coverage |
Not
widespread as only an individual or entity earning above a certain limit is
liable to pay direct taxes. |
Relatively
larger coverage as they are uniformly imposed. |
|
12 |
Tax Evasion |
Possible |
Not possible |
|
13 |
Inflation |
Direct
taxes can be used in controlling inflation. If the inflation rises beyond
control, the government can increase direct taxes which will reduce money for
spending and curtail demand for goods and services. |
Indirect
taxes, on the other hand, lead to inflation. An increase in taxes leads to
the rise in the cost of goods and services.
|
|
14 |
Collection of Tax |
Complex |
Comparatively easy, cost effective |
II. NEED FOR GST
The ‘Statement of Objects and Reasons’ of the CGST Act explains the difficulties due to the earlier tax system and why GST was enacted as under:
1) DIFFICULTIES OF OLD INDIRECT TAX SYSTEM:
1.
Multiplicity of
Taxes: Too many taxes
2.
Cascading of Taxes: Tax was levied
on tax and there was no set off available between state taxes and central taxes
3.
Each State’s VAT Laws: divided the
country into separate economic spheres.
4.
No free flow of trade: in the country
due to differing Octroi, entry tax, check post, rules & taxes in each
State.
5. High Compliance Costs: for tax payers in the form of number of returns, payment, etc.
2) WHY GST:
1. Simplify and Harmonize:
Ind Tax Regime
2. Single Tax: for entire supply chain
3. Reduce costs: to make
industry competitive both domestically & internationally
4. No cascading of taxes or Input Tax Credit: Set
off of taxes
5. Information Technology infrastructure: for broad
tax base & better tax compliance
III. INTRODUCTION TO GST
1) DEFINITION OF GST
1. Article 366: of the
Constitution states GST means any tax on supply of G or S or both EXCEPT taxes on the supply of ALHC
2) NATURE OF GST
1. Burden of Tax: In Income Tax, tax is paid and borne by the same person who earns income. In GST, tax is paid by the supplier but ultimately borne by the end consumer.
3) FEATURES / CONCEPTS OF GST
1. Tax on consumption: Tax is borne by the consumer in the State where G or S are finally consumed
2. Destination based tax:
i)
Tax is
levied where G/S are consumed.
ii)
Hence zero
tax is applicable on Exports
iii)
Imports are
taxed at the same rate as on domestic products
iv)
SGST will
accrue to the State where G/S are ultimately consumed
3. VAT: that is tax
that is collected step by step based on the value added at each stage of
production or distribution. The businessman pays GST on the price of his
products (-) the GST previously paid on G & S.
4. Continuous flow of credit: GST
eliminates tax on tax through the mechanism of Input Tax Credit (ITC). ITC is a
continuous chain of set-off of earlier taxes from the producer / manufacturer
5. Tax on supply: GST is a tax on supply & not on manufacture or sale. Hence stock / branch transfers, free gifts too can be taxed.
4) SCOPE
As per Article 366(2A) of the Constitution, GST is levied on all G & S, except ALHC
|
Particulars |
Central ED |
State ED |
Inter-state CST |
Intra-state VAT |
GST |
State Stamp Duty |
|
ALHC |
|
YES |
YES |
YES |
NEVER
– As per Article 366 |
|
|
Petroleum Crude, Diesel (HSD), Petrol (Motor Spirit), ATF, NG |
YES |
|
YES |
YES |
LATER |
|
|
Real Estate – under construction |
|
|
|
|
YES |
YES |
|
Real Estate |
|
|
|
|
|
YES |
|
Tobacco |
YES |
|
|
|
YES |
|
|
Import |
|
|
|
|
CD
+ YES |
|
5) BENEFITS OF GST
1. Common National Market: As
per ‘Statement of Objects and Reasons’ appended to the 101st Constituion Amendment Bill,
the object of GST is to have:
i)
Common
National Market with common tax, tax rates and procedures
ii)
Avoid
cascading effect of taxes i.e. tax on tax
iii)
One Nation –
One Tax (like Income Tax Act)
iv) Remove economic barriers for an integrated economy at the national level – No need to study each State Laws
2. Benefits for all Businesses, Industries,
Exporters:
i)
Low taxes –
due to ITC, widening of tax base, better compliance due to transparent system
ii)
Low cost –
due to subsuming of many Central & State Taxes
iii)
Make in
India – competitive goods
iv)
Competitive
Exports – Export only goods & not taxes
3. Benefits for consumers:
Low taxes & low cost
4. Benefits for small businesses:
i)
Higher
Threshold for GST Regn. – 20 L (10L in NE States)
ii)
Composition
scheme for annual turnover <= 1 crore
iii)
Single
registration unlike multiple registration in the old tax regime
5. Ease of doing business:
i)
Simple &
uniform taxes
ii)
Common Tax
procedures
iii)
Lower record
keeping costs
iv)
Low tax
compliance costs
v)
Simple
automated processes
vi)
Impersonal
Tax Administration – Less Physical Interaction, more system based
6. Economic growth;
i)
Exports, Manufacture,
Employment, GDP
ii)
Poverty
removal
iii)
Investment
climate
iv)
No tax
evasion
v)
Govt.
revenue
IV.
LEGISLATIVE FRAMEWORK OF GST
1) GENESIS OF GST IN INDIA
TIME LINE
|
2004 |
Kelkar
Task Force – First mooted the idea of GST in India |
|
2006 |
Mr. P. Chidambaram,
Finance Minister - set out a goal for GST to be implemented by 2010, which
could not be met |
|
2009 Nov 10 |
Empowered
Committee of State Finance Ministers – published the first discussion paper
on GST which provided the present dual tax model of GST |
|
|
Task Force
on GST – constituted by 13th Finance Commission – their report
contributed to the development of the concept of flawless GST |
|
2011 |
115th
GST Constitutional Amendment Bill - was framed – but could not be placed
before the Houses of Parliament |
|
2013 Mar 28 |
GSTN –
Goods & Services Tax Network – a non-profit company was constituted – to
provide IT infrastructure and services to the Central & State Govts., tax
payers, and other stakeholders for implementation of the GST |
|
2014 Dec 19 |
122nd
Constitutional Amendment Bill – was introduced in Lok Sabha |
|
2015 May 6 |
122nd
Constitutional Amendment Bill – was passed
by Lok Sabha |
|
Interim
Period |
Joint
Committee constituted by the Empowered Committee of State Finance Ministers–
framed Processes of GST like registration, return, payment, refund, revenue
neutrality structure |
|
2016 Jun |
Model GST Law – came
into being based on the above different business processes so framed |
|
2016 Aug 3 |
122nd
Constitutional Amendment Bill – was passed by Rajya Sabha with amendments |
|
2016 Aug 8 |
122nd
Constitutional Amendment Bill – the amended bill was again passed by Lok
Sabha with 443 votes cast in favour of the Constitutional Amendment Bill
& none against it. |
|
2016 Sep 8 |
Presidential
assent – was given - after ratification of the Bill by more than 50% states.
Thus the 122nd Constitutional Amendment Bill became the 101st Constitutional Amendment Act, 2016 |
|
2016 Sep 16 |
101st
Constitutional Amendment Act, 2016 - came into effect |
|
One year
period |
The laws
not in concurrence with GST were allowed to operate for 1 year from the date
of implementation of 101st Constitutional Amendment Act, 2016 |
|
2016 Sep 12 |
GST
Council – was constituted – by notification date 10 Sep 2016 |
|
2016 Nov |
Model GST Law - revised |
|
2017 Apr 12 |
Final Act
was passed |
|
2017 Jun 22 |
Implementation
of provisions relating to Administration, Composition Levy and Registration
under GST |
|
2017 Jul 01 |
Implementation
of remaining provisions of GST law EXCEPT provisions relating to TDS and TCS |
|
2018 Oct 01 |
Implementation
of provisions relating to TDS and TCS |
2) AMENDMENT IN CONSTITUTION
1. Need:
To provide concurrent taxing
powers to the Centre (Parliament) as well as the States (State Legislatures) to
tax the complete supply chain from production to distribution for both G &
S, as these powers did not exist for Centre & State in the current Constitution.
2. Enactment:
101st Constitutional
Amendment Act, 2016 – was enacted - w.e.f. 2016 September 16 (for more details -
see the timeline for Genesis of GST given above)
3. Important Changes: introduced in the Constitution by the above Act are:
|
Article No |
Particulars |
|
246A |
Newly inserted – Enabling provisions for the Centre
& States w.r.t. GST legislation - Taxing of Services by State - Parliament has exclusive power to make laws
with respect to GST on INTER-state supplies |
|
268A |
Omitted -
said article empowered the GOI to levy taxes on services. As tax on services
was brought under GST, such a prov was no longer required. |
|
269A |
Newly inserted – provides for GST on supplies on inter-state
trade to be levied & collected by the GOI & such tax shall be shared
by Centre & State in the manner as provided by Parliament by law - on
the recommendations of the GSTC. Parliament may by law formulate the principles for place
& time of supply of inter-state trade |
|
270 |
Amended –
to provide for distribution of GST Tax collected by Union between the
Union & States |
|
271 |
Amended – Surcharge
cannot be levied on G&S which are subject to GST under Article 246A |
|
279A |
Inserted – Constitution & Mandate of GSTC |
|
366 |
Amended –
Exclude ALHC from GST |
|
368 |
Amended – where
at least 50% of the States Legislatures have to ratify the bill in addition
to the method of voting provided for amendment of the Constitution. So any
modification in the GSTC shall also require 50% of the States Legislatures to
ratify it. |
|
Entries in List I & II |
Entries in
these lists have either been substituted or omitted: (i) to
restrict power to tax G or S in these lists OR (ii) to
take away power to tax G & S which have been subsumed in GST |
|
Compensation to the States |
Parliament
shall by law & on the
recommendation of the GSTC provide for compensation to the States for loss of
revenue arising on account of GST for 5 years. |
|
Petroleum & Petroleum Products |
These
products shall not be subject to GST till a date notified on the
recommendation of the GSTC |
3) DUAL GST
India is a federal country i.e. where the
both the Centre & the States have the power to levy &
collect taxes in order to raise resources
to perform their responsibilities. A dual GST is therefore
in keeping with the Constitutional requirement
of fiscal federalism.
India has adopted a Dual GST Model with
the following features
1. INTRA-State Supply: CGST & SGST/UTGST
i)
Intra-State
Supply for SGST/UTGST means both the supplier & the recipient are both
located within the same State
/ UT
ii)
Intra-State
Supply for CGST means both the supplier & the recipient are both located
within the country
iii)
The Centre
& State will simultaneously levy GST on the same price on every
taxable supply of INTRA-State Supply of G&S
iv)
Levy and
administration – Centre for CGST – Respective States / UTs for SGST/ UTGST
2. INTER-State Supply & IMPORTS : IGST
4) GST LAWS
|
|
The Law (w.e.f. 01 July 2017) |
Purpose |
|
1 |
The
Central Goods & Services Tax Act, 2017 (CGST Act) |
To levy
& collect CGST on Intra-State / Intra-UT supplies |
|
2 |
The
State Goods & Services Tax Act,
2017 (SGST Act) |
To levy
& collect SGST on Intra-State supplies |
|
3 |
The Union
Territory Goods & Services Tax Act, 2017 (UTGST Act) |
To levy
& collect UTGST on Intra-UT supplies |
|
4 |
The
Integrated Goods & Services Tax
Act, 2017 (IGST Act) |
To levy
& collect IGST on Inter-State / Inter-UT / Inter State & UT supplies |
|
5 |
GST
(Compensation to States) Tax, 2017 |
To
compensate States for the loss of revenue, if any, due to introduction of GST |
5) EXTENT, COMMENCEMENT, APPLICABILITY OF GST LAWS
|
APPLICABILITY |
INTRA
– STATE / UT SUPPLY |
INTER
– STATE &/ UT SUPPLY |
||
|
|
CGST |
SGST |
UTGST |
IGST |
|
States of India |
Y |
Y |
|
Y |
|
UT with State Legislature |
Y |
Y |
|
Y |
|
UT without State Legislature |
Y |
|
Y |
Y |
6) CGST
7) SGST
8) UTGST
9) IGST
|
ACT |
SUBSUMED
|
ADMINISTERED
BY |
APPLICABILITY |
|
CGST |
CED, ST |
Central Govt |
Extends to whole of India
(w.e.f. 22 June 2017) including J&K (w.e.f. 08 July 2017) |
|
SGST |
State VAT, Entry Tax, Octroi,
Luxury Tax, etc. |
State & UT with their own
State legislatures (J&K, Delhi, Puducherry,) |
Though there are multiple SGST
legislations, the basic provs are uniform in all the SGST legislations, as
far as feasible. This is necessary to preserve the essence of dual GST. |
|
UTGST |
--------- |
UT without their own State legislatures
(A&N Islands, Lakshadweep, D&NH, D&D, Chandigarh & Ladakh) |
--------- |
|
IGST |
-------- |
- Centre - Article 269A – see above - IGST is not a different tax
but a component of the main GST |
- No other country in the world
has a law as similar to IGST. IGST is unique to India. - Seller or SP in the origin
state is to charge IGST on Inter-State supply of G &/ S - IGST Rate = CGST Rate + SGST
Rate - Sharing: The exporting State
will transfer the SGST portion to CG Ã
CG will then transfer the SGST portion to the importing State - IMPORTS: of G &/ S from
outside = Basic CD + IGST - Exports = Zero Rated i.e. Nil
rate From all the above it is clear that GST is
a destination based Tax |
10) COMMON PROVISIONS IN GST LAWS
CGST Act (25 Sections) Ã
also apply to IGST Act (vide Sec 20 of IGST Act) & UTGST Act (vide Sec 20
of UTGST Act) & are also mostly applicable to SGST Acts.
11) RULES
CG has also notified the
following rules to implement the above 5 laws:
1. CGST
Rules, 2017
2. IGST
Rules, 2017
3. GST
Compensation Cess Rules, 2017
12) NOTIFICATION / CIRCULARS / ORDERS - BY CBIC
1. Notifications
are of 2 types
i)
Rate
ii)
Non-Rate
(notification for Sections, Rules, Amendment to Rules)
2. Circulars
& Orders – on subjects like proper officers, ease of exports, extension of
last dates for filling up various forms, etc.
13) EXISTING LAWS REPLACED
|
CENTRAL TAXES |
|
|
SUBSUMED (REPLACED 1. CED 2. Addl
Duties of Excise 3. Excise
on Medicinal & Toiletries Preparation Act 4. Addl
CD (CVD) – equal to Central Excise on similar goods manufactured in India 5. Special
Addl Duty – supposed to be = CST which was 4% earlier. Not changed inspite of
drop in CST rate to 2% 6. Surcharge
& Cess 7. Central
Sales Tax 8. Service
Tax |
NOT SUBSUMED 1. Customs
Duty (Basic) |
|
STATE TAXES |
|
|
SUBSUMED (REPLACED 1. VAT 2. Purchase
Tax 3. Entry
Tax, Octroi, Local Body Tax (LBT) 4. Entertainment
Tax (Other than the Tax levied by Local Tax Authorities) 5. Luxury
Tax 6. Betting,
Gambling and Lottery Tax 7. Surcharge
& State Cess |
NOT SUBSUMED 1. SED 2. Stamp
Duty 3. Profession
Tax 4. Electricity
Duty 5. Sales
Tax on 5 Petroleum Products (Inter State – CST & Intra State – VAT) 6. Toll
Tax 7. Road
& Passenger Tax |
14) ILLUSTRATIONS
See text book
V.
FRAMEWORK FOR IMPLEMENTING GST LAWS
1)
GST COUNCIL
1. Constitution: Article 279A
–> President –> GST Council (Centre + States)
2. Members: Union
Finance Min (Chairperson) + Union Minister of State in charge of Revenue or Finance
(Member) + Min in charge of Fin/Tax/Any
other Min nominated by each State Govt. (Members)
3. Quorum
= 50% of Total Members
4. Decision:
3/4th (75%) Majority Ã
Weightage of votes à CG – 1/3rd & SG – 2/3rd
5. Recommendation: The
GSTC makes recommendation to the Union & the States on:
i)
The taxes to
be subsumed
ii)
The G&S
that may be subjected to or exempted from GST
iii)
Model GST
Laws
iv)
Principles
of levy
v)
Apportionment
of GST levied on supplies in INTER-State trade under Article 269A
vi)
Place of
supply
vii)
Threshold
limit of turnover for exemption from GST
viii)
Rates
including floor rates with bands of GST
ix)
Any Special
Rates for a specified period, to raise additional resources during any natural
calamity or disaster
x)
Special
provisions with respect to 11 Special Category States (SCS)
8 NE States - Aru P, Assam, M3 (Manipur,
Meghalaya, Mizoram), Nagaland, Sikkim, Tripura, 3 Mountainous States - J&K,
HP, Uttarakhand
xi)
Any other
matter
2)
GST Network
1. Setup:
i)
On 2013
March 28 (see timeline on page 5 above)
ii)
As a PRIVATE
Co. u/s 8 of the Cos Act, 2013
iii)
Initially
C.Govt = 24.5% + State Govt = 24.5% + NG Fincl Instn = 51%
iv)
On 2018 May
4, in its 27th Meeting, considering the nature of its State
function, GSTN has been converted into a fully owned GOVT Co., by purchasing
the 51% share valued at ₹ 5.1 crore equally by C & S Govt.
2. Service Providers:
i)
Infosys –
MSP - Managed Service Providers
ii)
GSPs (GST Suvidha
Service Providers) Ã which is made up of 73 Cos (IT
& ITeS & Fincl Technology Cos) + 1 Commissioner of Commercial Taxes
(CCT, Karnataka) Ã would develop applications to be
used by taxpayers for interacting with the GSTN
3. Data Access: The
design of GST systems is based on role based access
i)
The taxpayer
can access his own data through
identified applications like registration, return, view ledger, etc.
ii)
The tax
official having jurisdiction, as per GST law, can access the data
iii)
Data can be
accessed by audit authorities as per law.
iv)
No other
entity can have any access to data available with GSTN
4. Functions: GSTN
would:
i)
Manage the
website www.gst.gov.in
ii)
Provide 3
front end services to taxpayers Ã
registration, payments and return
iii)
Develop back
end IT modules for the States Ã
who have opted for the same
iv)
Facilitate
registration, forward the Returns to Central & State Authorities, perform
computation & settlement of IGST, match tax payment details with banking
network, provide various MIS reports to the Central & State Governments
based on the taxpayer return information, provide analysis of taxpayers’
profile, run the matching engine for matching, reversal and reclaim of ITC
3)
GST RATES
Indian GST
Model 4 tier rate structure (5%, 12%, 18%, 28%)
|
Particulars |
GST Rates |
|
Goods: Inter
State Supply Intra
State Supply |
IGST Rates
are: Nil, 0.25%, 3%, 5%, 12%, 18%, 28% CGST Rates
+ SGST/UTGST Rates will be each 50% of IGST Besides Compensation
Cess is applicable – For Tobacco products, Pan Masala, Motor Cars, Coal,
Aerated Water, etc |
|
Services: Inter
State Supply Intra State
Supply |
IGST Rates
are: General Rate = 18%. Few cases services are also taxed at 5%, 12%, 28% CGST Rates
+ SGST/UTGST Rates will be each 50% of IGST Few
Services are exempt from GST |
|
Import of Goods: |
Basic CD +
Ed Cess & Sec & H Sec Cess + IGST + Comp Cess Certain
Imports are exempt from Basic CD & IGST |
|
Exports: |
Exports
are Zero Rated or have NIL Rate of Tax |
4)
CLASSIFICATION OF GOODS & SERVICES
HSN
(Harmonised System of Nomenclature) Code
is used for classifying the G & S under GST.
Chapters referred are the
Chapters of the Ist Schedule to the Customs Tariff Act, 1975.
Eg: Chapter – Section – Heading –
Group
Eg: 87032191 (87 - Vehicle Other
than Railway, 03 – Veh for transport, 21 – CC < 1000, 91 – Motor Car)
5)
COMPENSATION CESS
1. The
GST (Compensation to States) Act, 2017 provides for compensation to the States
as recommended by the GST Council for the loss of revenue due to GST
2. Compensation
will be provided for a period of 5 years from the date the State brings
its SGST Act into force (i.e. upto 1-July-2022)
3. 2015-16
will be considered as the base year
for calculating the revenue to be protected
4. The
growth rate of revenue for a State during the 5 years period i.e. from 2017-18
to 2021-22 is assumed to be 14% p.a. (i.e. 2015-16 revenue + 14% growth
rate for 5 years)
5. State
revenue to be protected is the loss of revenue due to subsumed taxes
such as State VAT, CST, Entry Tax, Octroi, LBT, taxes on luxuries, taxes on
advertisements, etc except taxes on ALHC & 5 Petroleum Products.
6. This
cess will not be payable by Exporters and persons who have opted for
compensation levy
7. The
ITC of this cess can be used to pay only compensation cess and not the other
taxes like CGST, SGST, IGST
8. The collected compensation cess
flows into the Central Govt’s Consolidated
Fund of India (CFI), and is then transferred to the Public Account of
India, where a GST compensation cess account has been created. States are
compensated bi-monthly from the accumulated funds in this account.
Read more at: https://www.bloombergquint.com/politics/centre-used-gst-compensation-cess-elsewhere-violated-law-cag
Copyright © BloombergQuint
6)
E-WAY BILL SYSTEM
1. Meaning: Is
an electronic document generated on the GST portal evidencing movement of goods
2. Form:
|
PART
A |
PART
B |
|
Recipient details: |
Transporter details: |
|
Details of GSTIN |
Vehicle No |
|
Place of delivery (Pin Code) |
|
|
Invoice / Challan No & date |
|
|
Value of Goods |
|
|
HSN Code |
|
|
Transport Document No (GRNo., or RRNo., or AWB No., B/L No. and |
|
|
Reasons for transportation |
|
3. Issuer:
Every registered person who causes movement of goods (which may not be
necessarily on a/c of supply) of value > ₹50,000 is required to
furnish above mentioned information in Part A prior to the commencement of
movement of goods. The Part B details helps in generation of e-way bill.
4. Aim:
i)
E-way bill
is a mechanism to ensure that goods being transported comply with the GST law &
is an effective tool to track movement of goods and tax evasion.
ii)
To remove
the ills of the way bill system under VAT in different states with differing rules which contributed to
bottlenecks at the check posts & made compliance difficult
iii)
Digital
interface in place of physical interface which will facilitate faster movement
of goods
iv)
Improve TAT
of vehicles & help the logistics industry by increasing the average
distance travelled, reduce travel time & costs
5. Implementation:
INTER-State Ã
1 April 2018
INTRA-State Ã
All State had to implement before 3 June 2018, NCT of Delhi on 16 June 2018
7)
ANTI-PROFITEERING MECHANISM
National Anti-Profiteering Authority (NAPA)
is constituted by the C. Govt to ensure that prices remain under check &
that businesses do not pocket all the gains from GST
This was set up as implementing GST in many
countries led to inflation because the supplier was not passing on the benefit
to the consumer on a/c of reduction in tax rates or increase in ITC
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