GST Update As On 5th January 2016
Goods & Service Tax (GST ) in India will have the following aspects :
a. No MRP Based GST –GST to be levied on advalorem value i.e transaction value and not on MRP .
Legal Metrology Act is applicable on MRP for levy of excise duty but will not be applicable in GST regime for the purpose of levy of GST on goods . At present, various goods attract excise duty on abated value .
b. Discounted Rate for Levy of GST – The discounted price will be considered as consideration for the purpose of levy of GST.
c. GST(IGST) To Replace CVD & SAD – Counterveiling Duty (CVD) & Special Additional Duty (SAD) will be replaced by GST(IGST) while customs duty will remain as such .
d. Draft GST Act,2016 In January 2016– The final version of draft GST Act 2016 wil be public domain in Janauray 2016 itself.
e.Services To Become Expensive – Presuming that GST shall be levied at standard rate of 18% on services , then it will be more than the present levy of service tax on the services . Whereas, it will be a challenge before the Governement to keep it below 16%, if they want to make this industry flourish in coming days.
f. Import of Finished Goods – It may attract some additional tax under GST to have uniformity with indigenous goods manufactured in India .
g. Food in Restaurent to Be Cheaper – GST will replace the levy of VAT and Service Tax . This will ultimately make the food cheaper in restaurents.
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