Salient features of GST and very brief and precise explanation on them.
Answers
Answer:
The salient features of GST are as under: (i)GST is applicable on 'supply' of goods or services as against the present concept on the manufacture of goods or on sale of goods or on provision of services. ... (iii) It is a dual GST with the Centre and the States simultaneously levying tax on a common base.
Salient Features
1. Levy of Tax:
The State GST (SGST) and Central GST (CGST) shall be levied on all the transactions of goods and services, concurrently.
2. Utilization of Levy:
Levies from State GST (SGST) & Central GST (CGST) shall form part of State and the Centre respectively and no cross-utilization shall be allowed.
3. Availability of Tax Credit:
In respect of taxes paid on any supply of goods or services or both used or intended to be used in the course business.
4. Destination based Tax:
The GST is a destination based tax on consumption of Goods and Services. Hence the credit of SGST shall be transferred to the Destination State in the form of Integrated GST (IGST). IGST will be imposed on all Inter-State Transactions.
5. Assessment :
Registered person will be allowed himself to assess the taxes payable under the GST Laws and furnish a return for each Tax Period.
6. Threshold Limit:
There shall be a taxable limit (presently, `. 10 Lakhs in North Eastern States & `. 20 Lakhs in rest of the county)
7. Composition Scheme
The GST Laws will provide a composition scheme for small dealers (presently, turnover of `. 75 Lakhs).
8. GSTIN or GST Identification Number
Every registrants or dealers ( including Exporters and Importers) shall be given a PAN based TIN number which shall be a common to the both the State GST and Central GST.