After the central and state Government comes together and share their administrative power. Now GST (Goods and Service Tax) is all set to roll out from 1st july 2017.
A Union Territory Puducherry and twenty one states till now have passed the GST acts.
In Lok sabha 2011, congress leader UPA government introduced the Bill. It’s roll out date was April 2012. Incidentally, BJP government including PM Modi,s Gujarat red flagged to it.
Let’s have a look at difference between 2011 GST Bill and current Bill
In 2011, GST Bill as an any tax on supply of Goods and services. Also In spite of taxes on supply of natural gas, petroleum crude, high speed diesel, alcoholic liquor for human consumption and aviation turbine fuel.
In 2014, GST Bill tax excluded on supply of alcoholic liquor for human consumption. The centre will impose more tax on tobacco.
The 2011 bill provision excluded from the 2014 bill
Taxation of special Goods
In taxation of special Good and Services constitution has imposed restriction on states. This provision has removed from the current Bill.
The Goods listed under Article 366 had removed in 2011 Bill from its ambit. This provision has removed from the current bill.
GST dispute settlement authority
In 2011 Bill, provision for creation of Good & Services Tax dispute settlement authority. It helps to settle down dispute between Central & State government. In current bill this provision has removed.
Entry Tax of Goods in local area
The 2011 Bill, allowed states to tax entry of goods in to local area for sale or use only. The extent imposed by Municipality or Panchayat. This provision has removed from the current bill.
Additional Provisions in Current GST Bill
In the current bill parliament may provide compensation to states. It can be maximum to five years.
The four GST bill had approved in Loak sabha. The central GST Bill, Union Territories Bill, Integrated GST Bill and compensation law.
In the current bill there are four tax slab 5%, 12%, 18% and 28% and in 2011 bill it was 18% to 28%.
An additional tax (up to 1%) on the supply of goods in interstate trade will give to supply state for two or more years.