GST – Features

  • Reduction in prices of goods & services due to elimination of cascading
  • Applies to all supplies of goods / services (as against manufacture, sale or provision of service) made for a consideration except –
    • Exempted goods / services
    • common list for CGST & SGST q Goods / services outside the purview of GST
    • Transactions below threshold limits
  • Dual GST having two concurrent components
    • Central GST (CGST) levied & collected by Centre
    • State GST (SGST) levied & collected by States
  • CGST & SGST on intra-State supplies of goods / services in India
  • IGST levied & collected by the Centre applicable to
    • Inter-State supplies of goods / services in India
    • Inter-state stock transfers of goods
    • Import of goods / services
    • Export of goods / services (if made on payment of GST under claim of rebate)
  • Export of goods / services – Zero rated
  • All goods or services likely to be covered under GST except:
    • Alcohol for human consumption –State Excise + VAT
    • Electricity – Electricity Duty
    • Sale / purchase of Real Estate – Stamp Duty + Property Taxes
  • Five specified petroleum Products – to be brought under GST from a later date on recommendation of GSTC
  • Tobacco Products – under GST + Central Excise
  • Floor rate with a small band of rates for standard rated goods / services for CGST & SGST
  • Optional Threshold exemption in both components of GST
  • Optional Compounding scheme for taxpayers having taxable turnover up to a certain threshold above the exemption