TMI BlogExpected Model of GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Expected Model of GST - By: - CA Akash Phophalia - Goods and Services Tax - GST - Dated:- 25-8-2015 - - As per recommendations by Joint Working Group appointed by Empowered Committee in 2007, the GST in India may have four components in its tax structure as (a) Central tax on goods upto retail level, (b) Central Service Tax, (c) State Vat tax on goods, and (d) State VAT on services. As far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as tax rate structure is concerned each of the above four components may have four rate categories. The Central GST will be administered by the Central Government and the State GST will be administered by the State Governments. The different taxes will be subsumed as under :- Subsumed in Central Tax Subsumed in State Tax Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Duties (CENVAT) Value Added Tax Additional duties of excise Purchase Tax Additional customs duties in the nature of excise duties (countervailing duties) State Excise Duty (except Liquor) Cessess levied by the Union Entertainment Tax (unless it is levied by the loca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l bodies) Service Tax Luxury Tax Central Sales Tax Octroi and Entry Taxes Surcharges levied by the Union Taxes on Lottery, Betting and Gambling Proposed GST will have two components Central GST and State GST. Taxable event will shift to sale rather than manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. Exports will be zero rated and will be freed from all duties and taxes. JSW also prepared the list of exempted goods. Certain products or components will be kept out of the GST structure so as taxes by local bodies. Cross utilization between State GST and Central GST is not expected to be allowed. This is just for your reference. It does not constitute our professional advice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or recommendation. - Reply By Srikanthan S as = Dear Mr Akash Phophalia, thanks for the summary. However, you have mentioned that 'taxable event will shit to sale rather than manufacture'. Is it not 'supply' of goods/services which will be taxable event? That's why industries are looking at the fate of 'stock transfers or branch transfers' on which there could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a levy. Do kindly clarify. Regards, S.Srikanthan Dated: 28-8-2015 Reply By KASTURI SETHI as = Taxable event will be on supply and Supply will be defined. It will include Stock transfer, branch transfer. Dated: 30-8-2015 Reply By KASTURI SETHI as = Srikanthan S. is right. Dated: 30-8-2015 Reply By CA Akash Phophalia as = Respected Sir This is the recommendation given by Joint Working Gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up as appointed by Empowered Committee. The basic thing which is conveyed is the shift of taxable event from manufacture. Further you all learned people may be correct that the taxable event is on supply. As the GST is yet in draft, therefore, it is difficult to conclude about the taxable event. On the basis of material available I found that the taxable event will no longer be manufacturing b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut will be sale or supply. Dated: 31-8-2015 Reply By Srikanthan S as = Yes; you are right. The basic shift of the taxable event is from manufacture. The Constitution (One hundred twenty second Amendment) Bill, 2014 proposes to insert Clause (12A) in Article 366. (12A) goods and service tax means any tax on supply of goods, or services or both except taxes on the supply of the alcohol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic liquor for human consumption. [the term 'supply' has not been defined]. As a result, the concepts 'sale' , 'manufacture' which are of great significance under the existing indirect tax law are likely to lose relevance once GST is introduced. Regards, Srikanthan Dated: 31-8-2015 - Scholarly articles for knowledge sharing authors experts professionals Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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