Goods and Services Tax (GST)
A comprehensive Goods and Services Tax (GST) has been proposed and the Centre and the Empowered Committee of State Finance Ministers. GST is to have two components; one levied by the Centre (central GST or CGST) and the other by States (State GST or SGST). The regime is to be implemented through multiple statutes, one for CGST and the rest for the respective SGST statutes. While there would be some flexibility for each State in formulating its SGST regime, the basic features related to chargeability, definition of what’s taxable, valuation, classification will be uniform and consistent.
The dual GST (CGST and SGST) would be imposed on all transactions in goods and services except exempted transactions and certain goods and services kept outside the GST’s purview. The threshold limit for CGST is proposed as Rs 1.5 crore for goods and Rs 10 lakh for services. The threshold for SGST is proposed as a cumulative total of Rs 10 lakh for both goods and services.