About Basic Features of GST
Dual GST
Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.
Inter-State Transactions and the IGST
Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.
Central Taxes to be subsumed
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Central Excise Duty
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Additional Excise Duty
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The Excise Duty levied under the Medicinal and Toiletries Preparation Act
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Service Tax
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Additional Customs Duty, commonly known as Countervailing Duty (CVD)
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Special Additional Duty of Customs-4% (SAD)
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Cesses and surcharges in so far as they relate to supply of goods and services.
State Taxes to be subsumed
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VAT/Sales Tax
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Central Sales Tax (levied by the Centre and collected by the States)
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Entertainment Tax
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Octroi and Entry Tax (all forms)
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Purchase Tax
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Luxury Tax
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Taxes on lottery, betting and gambling
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State cesses and surcharges in so far as they relate to supply of goods and services.
Rates of GST with band
GST rates will be uniform across the country. However, to give fiscal autonomy to the States and the Centre, there will a provision of a tax band over and above the rate of the floor rates of CGST, SGST and IGST. Initially, the rates of CGST, SGST and IGST are expected to be closely aligned to the Revenue Neutral Rates (RNR) of the Centre and the States.
Goods and Services Tax Network (GSTN)
A not-for-profit, Non-Government Company called Goods and Services Tax Network (GSTN), jointly set up by the Central and State Governments will provide shared IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders.
GST Suvidha Provider (GSP)
The GSTN has selected few companies to acts GSPs through whom the IT infrastructure can be accessed in a safe and easy manner for all tax payers. This eco-system is built to harness the power of Indian IT companies to facilitate smooth transition of the Tax payers discrete systems in to a uniform Portal with seamless reconciliation, compliance, Tax payments and Refunds.