Integrated GST Bills Await Parliament Approval

The Goods and Services Tax (GST) Council, in its meeting chaired by the Federal Minister for Finance & Corporate Affairs, Arun Jaitley has approved both the drafts of the Central GST Bill and the Integrated GST Bill that were vetted by the Federal Law Ministry. India’s Federal Government presented the two Bills to the Parliament for their passage in the ongoing Budget Session.

Some of the main features of the two Bills, as finalized by the GST Council, are:

  • A state-wise single registration for filing returns, paying taxes, and other compliance requirements. Most of the compliance requirements can be presented online, leaving very little room for physical interface between the taxpayer and the tax official.
  • A taxpayer is required to file one single return state-wise to report all his supplies, whether made within or outside the state or exported out of the country and pay the applicable taxes on them, such as the Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST).
  • A business entity with an annual turnover of up to Rs. 2,000,000 ($32,800) is not be required to register in the GST regime.
  • A business entity with a turnover of up to Rs. 5,000,000 ($76,000) can opt for a composition plan under which it has to pay a much lower rate of tax and will be required to fulfill very minimal compliance requirements.
  • Entities involved in agriculture  are not required to  register in the GST regime if their business is limited to the supply of produce out of cultivating land.
  • An anti-profiteering provision has been incorporated to ensure that the reduction of tax incidence is passed on to the consumers.

You may access the complete notification released by the Press Information Bureau of India, here.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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