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| GST Developments |
• GST was introduced on July 1, 2017 (by 101st Constitutional amendment) as biggest indirect tax reform by subsuming around 17 indirect taxes like excise duty, VAT, service tax, luxury tax etc.
- Indirect taxes not subsumed include Basic Custom Duty, Anti-Dumping Duty, Central Excise on Petroleum Products, VAT on alcohol for human consumption etc.
- GST is currently levied on all products (except petroleum products, alcohol, real estate & electricity) in four slabs of 5, 12, 18 and 28%.
• GST Council is a Constitutional body under Article 279A, providing recommendations to Union and State Government on GST related issues.
- Council is chaired by Union Finance Minister and other members are Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all States.
- Its recommendations are binding, and all decisions are taken by 75% majority of members.
Important associated terms and concept
Anti-profiteering
Any benefit by way of reduction in rate of tax or increase in input tax credit arising due tointroduction of GST shall be passed on to the customers by way of commensurate reductionin prices. This measure is known as Anti ProfiteeringInput Tax Credit
It means at the time of paying tax on output, reduce the tax already paid on inputsE-way Bill
It is a document required to be carried by a person in charge of the conveyance carrying anyconsignment of goods of value exceeding Rs. 50,000 for sales beyond 10 km in GST regime.(Currently, gold is exempt from this requirement.)
Key developments with regard to GST in recent times
- HSN code, developed by World Customs Organization, is an international nomenclature for the classification of traded goods for customs purposes.
• Ministry of Finance indicated that issuers and beneficiaries of fake GST invoices can be detained under the COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Activities Act), 1974.
- At present, actions are being initiated under the GST law, income tax law and the Prevention of Money Laundering Act.
- COFEPOSA Act, 1974 provides for preventive detention in certain cases for the purposes of
- conservation and augmentation of foreign exchange and prevention of smuggling activities and for matters connected.
• Supreme Court Upheld Levy of GST on Lottery, Betting and Gambling
SC observed that definition of goods under Article 366(12) of the Constitution was inclusive and there was no intention to give any restrictive meaning to goods.
