GST inches closer to July 1 rollout: Things that you must know

New Delhi: The government has expressed confidence that the historic tax reform Goods and Services Tax (GST) will be rolled out from July 1.

Touted as the biggest indirect tax reform since independence, GST would subsume central excise, service tax and other local levies.

On March 29, Lok Sabha approved the four supplementary legislations.

The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017 were passed after negation of a host of amendments moved by the opposition parties.

The GST Council, however, deferred a decision on tax structure to its next meeting on May 18-19

Here are the key features of new indirect tax regime

-GST to be levied on supply of goods or services

-All transactions and processes only through electronic mode – Non-intrusive administration

-PAN Based registration

-Registration only if turnover more than Rs 20 lac

-Option of voluntary registration

-Deemed registration in three days

-Input Tax Credit available on taxes paid on all procurements (except few specified items)

-Credit available to recipient only if invoice is matched– Helps fight huge evasion of taxes

-Set of auto- populated monthly returns and annual return

-Composition taxpayers to file quarterly returns

-Automatic generation of returns

-GST Practitioners for assisting filing of returns

-GSTN and GST Suvidha Providers (GSPs) to provide technology based assistance

-Separate electronic ledgers for cash and credit

-Tax can be deposited by internet banking, NEFT/RTGS, Debit/credit card and over the counter

-Cross utilization of IGST Credit first as IGST and then as CGST or SGST/UTGST

-Concept of TDS for government departments

-Concept of TCS for E-Commerce companies

-Refund to be granted within 60 days

-Provisional release of 90% refund to exporters within 7 days

-Interest payable if refund not sanctioned in time

-Refund to be directly credited to bank accounts

-Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime

-Special procedures for job work

-System of GST Compliance Rating

-Anti- Profiteering provision 14