Wednesday, 15 June 2016

All online purchases to attract GST, says law

All purchases made online will attract a uniform Goods and Services Tax , likely to take effect from April next year, according to the model Goods and Services Tax (GST) law approved by state finance ministers on Tuesday. The tax, in lieu of local levies, will be imposed at the first point of financial transaction. This clears the air on applicability of GST in e-commerce in cases where
goods were being sold in one state but was being bought in another state.
Ads by ZINC

The model GST law, which has 162 clauses and four schedules, has also suggested a jail terms of up to five years and fine for violation of the provisions of the statute.
It prescribes a threshold of Rs 9 lakh annual turnover for applicability of the new levy and Rs 4 lakh for businesses in North Eastern states including Sikkim.
Revenue Secretary Hasmukh Adhia said the Empowered Committee of State Finance Ministers at their meeting on Tuesday in Kolkata approved the model GST law.
"We request all stakeholders to give their suggestions/ comments to secretariat of Empowered Committee of FMs and or to finance ministry," Adhia tweeted.
The government is hoping to get the Constitution Amendment Bill passed by Parliament in the upcoming Monsoon Session. It plans to roll out GST from April 1, 2017 that will subsume excise, service tax and all local levies.
Virtually all states have supported the idea of GST except Tamil Nadu which has "some reservations", Finance Minister Arun Jaitley said after the meeting of Empowered Committee on the long awaited indirect tax reform. 

No comments:

Post a Comment