Draft GST Bill provisions
Q. Which of the following is/are true regarding draft of the GST bill proposed?
1) GST will be payable on transaction value i.e. the price which does not include expense such as packing, commission, etc.
2) There are two types of GST proposed (Centre and State) instead of a single one.- Published on 21 Jun 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 2
- All forms of "supply" of goods and services such as sale, transfer, barter, exchange, license, rental, lease and import of services of goods and services made for a consideration will attract CGST (central levy) and SGST (state levy).
- States will draft their own State GST based on the draft model law with minor variations.
- As GST will apply on "supply", the erstwhile taxable heads such as "manufacture", "sale" and "provision of services", among others, will lose relevance.
- With GST to be applicable according to whether a transaction is "intra-state" or "inter-state", separate provisions are there to help an assessee determine the place of supply for goods and services.
- GST would be payable on "transaction value", being the price actually paid or payable, and said to include all expenses in relation to sale, such as packing and commission.
