Sunday, June 15, 2014

GOODS AND SERVICE TAX


  • The GST need to submerge all national level taxes into a single GST. The State level VAT can also be submerged into a single national level GST as step-1.
  • GST collection and assessment to be administered at State level.
  • All collections of GST to be automatically credited as per pre-defined formula between Central Government and State Government. The states percentage share can be a little higher as compared to existing ratio of central – state collection levels, with a minimum guarantee of existing collection by State Government.
  • The national GST to be refunded to exporting State by the importing State to ensure tax benefit to the respective State on the basis of value addition.
  • Alternatively, the exporting State may refund the input GST to the exporting dealer automatically and the importing State can charge import GST on the purchase price, at the time of import itself. This will result into consumption based taxation. This alternative will also facilitate refund of entire GST in case of international export.
  • No other tax in addition to GST be permitted to Central Government as well as to the State Government except few exceptions.
  • The national level computer network to disseminate information between States about interstate purchase/ sale to eradicate evasion.

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