Updated 8:27 am, Jul 29, 2020
News Flash:
The Union Territory Goods and Services Tax (GST) Bill has got the assent of President of India. The Act is a replica of the Central GST law and is likely to take effect from July 1.
With this, Chandigarh becomes first in region to have GST Act as the states are yet to pass their Act.
The maximum rate proposed under the UT GST Act 2017 is 20%. If a registered person supplies goods or services or both within Chandigarh he will be charging the Central GST and the UT GST.
When goods are sold to another state, the Integrated GST will be levied.
GST will give the seamless flow of credit of tax.
“It is expected that GST will reduce the prices of goods and services. Post-GST all the indirect taxes like service tax, excise duty, value added tax, entertainment tax, luxury tax, octroi, road tax, toll tax, stamp duty, electricity duty will become one tax — GST,” said Keshav Garg, a local taxation expert, who has authored a book on GST.
Another expert Ajay Jagga said, “The schedules are clear i.e. 5%, 12% 18% and 28% but the list of items under these rates are yet to come.”
Duties on alcohol for human consumption shall continue to be levied even after GST.
GST in the city shall now be monitored by the Central Government as is the case in other UTs.
There shall be no power with UT administrator with respect to levy and charge-ability of indirect tax.
“All decisions shall now be taken by the Centre after recommendations from GST Council,” added Garg.
HOW GST AFFECTS YOU
Chandigarh has become the first city in region to have GST Act as the states are yet to pass their Act. Here’s how it will impact you
CONSUMERS
Consumers shall benefit to a large extent. The prices of most goods and services, except a few will go down. Products like high-end phones etc shall become cheaper.
TRADERS
Credit of taxes paid on purchase of capital goods (used to grow business) from a manufacture (earlier not available) shall now be available.
MANUFACTURER
Since GST will bring uniform taxes all across the country, the entire country shall now be an open market for purchase of raw material and other inputs. There shall be smoother flow of goods without any obstruction.
PROFESSIONALS
Professionals shall be allowed to take credit of the goods they purchase for their practice, which was earlier not allowed. This will reduce their costs, implying that good quality service shall be given at cheaper rates.
FOREIGN INVESTORS
Since GST will do away with multiplicity of tax and bring ease of doing business in India, It shall encourage investment.
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