Goods & service Tax (GST) is a comprehensive indirect tax on
manufacture, sale and consumption of goods and services throughout India. It is
going to replace most of the indirect taxes currently levied by the central and
State governments separately.GST will be
governed by 3 Central laws and 29 State laws.
As these laws are voluminous, a GST reckoner summarising the GST
law has been prepared for easy reference. Only relevant sections are included
in as minimum words as possible without distorting the meaning.We are also developing GST
software which will cater to all the requirements of GST and thereby facilitate
filing of simplified GST returns in a simpler way.
Intra-State supply (within State or union territory)
GST will be levied on all goods and services except on goods
outside the scope of GST, exempted goods & services and transactions
below threshold limit.
Threshold limit is
annual turnover of Rs.10 lakh for businesses in the North-eastern and hill States,
and Rs. 20 lakh for rest of India.
No tax will be payable
on export of goods and services as they are considered ‘zero rated supplies’.
Small taxpayers with
an aggregate turnover in a financial year up to Rs.75 lakhs or below (Rs.50
lakhs or below for Special Category States) shall be eligible for composition
scheme (i.e. tax at a flat rate without credits).
Indirect taxes which are subsumed in GST
Not subsumed in GST
Basic Customs duty
Central Excise Duties
Alcohol for human
State VAT or Sales Tax
Central Sales Tax
Octroi and Entry Tax
Advertisement & Luxury Tax
Taxes on lottery,
betting and gambling
duties of customs (SAD)
Extent of GST Acts
CGST & IGST Act
extends to the whole of India
SGST Acts passed by State
governments extend to each such State.
UGST Act extends to
the Union territories of the Andaman and Nicobar Islands, Lakshadweep, Dadra
and Nagar Haveli, Daman and Diu, Chandigarh and other territory.
Input Tax Credit
credit between goods and services would be available.
SGST and CGST credit
can be cross-utilised only for IGST. IGST credit can be cross-utilised for
in the reckoner
Electronic credit or cash ledger maintained by GSTN
Input tax credit
Input service distributor
◆ First column given in
the reckoner contains section numbers.
◆ In the
reckoner, the word ‘notified’ wherever used, refers to notifications yet to
amounts given in reckoner are in Indian rupees.