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Dear Friends

As we all know that the biggest Indian tax reforms till date is going to be implemented in the coming future i.e. GST "Goods And Service Tax". In this move the roadmap for GST implementation has been made and ready to implementation but due to opinion difference in the state and Centre ministers on some of the major issue its final implementation is being delayed.

Levy/Chargeability of GST

The tax base of GST shall be very wide and would cover all goods and services. It would have two components.

CGST it shall be levied and collected by centre

SGST it shall be levied and collected by state govt.

The basic features of law such as chargeability, taxable person, basis of taxability etc. shall be the same for both centre and state.

This taxation model is known as dual GST model being the tax is charged by the centre and state on the same transaction. GST shall be implemented through the multiple statues i.e. one single statute for centre and one single statute FOR EACH STATE i.e multiple statute for multiple states.

GST will subsume in itself all major INDIRECT TAXES like excise duty, custom duty, VAT, service tax, luxury tax etc. however the fate of the following indirect taxes is not decided till date.

Purchase tax (i.e. sales tax where the purchaser of goods is responsible for tax collection)

Stamp Duty

Vehicle TAx

Electricity Duty

Other Entry tax and octroi

All the above mentioned taxes are subject matter of state.

Taxation Principle of GST- DESTINATION BASED

GST will follow the destination principle i.e impact of GST would fall on the person finally consuming the goods and services. Also the tax revenue in the case of SGST shall accrue to the state where the imported goods and services shall be consumed.

Friends this is my first article on GST and on CAclubindia a well. i wiil share my knowledge with all of you everyday through writing some more articles on this topic. you can reach me at

Subhash Bhaskar

Proprietor Of S C Bhaskar & Co.

Chartered Accountant


Published by

CA Subhash Bhaskar
(Practicing CA)
Category GST   Report

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