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Online purchases to attract Goods and Services Tax from next year

Online purchases to attract Goods and Services Tax from next year
Image Source: Sages Software

The state Finance Minister’s model Goods and Services Tax (GST) law prescribes a uniform tax to be levied on all online purchases beginning April next year. The Minister approved the law on Tuesday.

Further, the tax, in lieu of local levies, will be imposed at the first point of financial transaction clearing the air in cases where goods were sold and bought in different states.

The model GST law has 162 clauses and four schedules. The law also prescribes imprisonment of upto five years and fine for violation of the provisions of the statute.

The threshold for applicability of new levy is an annual turnover of Rs 9 lakh and Rs 4 lakh for businesses in North Eastern states including Sikkim.

Revenue Secretary Hasmukh Adhia tweeted about the model GST law. “We request all stakeholders to give their suggestions/ comments to secretariat of Empowered Committee of FMs and or to finance ministry,” Adhia tweeted.

Government is hoping to get the Constitution Amendment Bill passed by Parliament in the upcoming Monsoon Session. It plans to roll out GST from April 1, 2017 that will subsume excise, service tax and all local levies.

The GST has support from virtually all states except Tamil Nadu which has “some reservations”, Finance Minister Arun Jaitley said after the meeting of Empowered Committee on the long awaited indirect tax reform.

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