Draft GST Act,2016
Finally, the Empowered Committee of State Finance Ministers has handed over their latest version of proposed draft GST Act to Government of India, Ministry of Finance for further deliberations.
The new draft GST Act,2016 has an addition of almost 10-15% in the old proposed GST Act. The remarkable aspects in the proposed draft GST Act,2016 to be implemented under GST in India are as below :
a.The draft GST Act has 162 clauses and 4 schedules.
b.New definitions have been incorporatd with enhanced clarity .
Section 2 (48): “goods’’ means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply;
Section 2(59): “services’’ mean anything other than goods. It also includes intangible property and actionable claim.
c.The GST shall be levied at the time of supply of goods and/or services .
d. “Consideration” is a sine qua non for levy of GST .
e. A jail term upto 5 years and fine for violation of the provisions of the statute.
f. Online sales in e-commerce will attract GST.
g. A provision of advance ruling is provided under GST.
The draft GST Act,2016 has various additions and minute amendments in the last draft GST Act. The final GST Act can further see more 5-8% additions, amendments and alterations from this proposed draft GST Act,2016 .
The draft GST Act,2016 is a step ahead for rollout of GST in India from April 2017. It is pertinent to note that the implementation of GST is expected to result a 2% growth in GDP of India .