The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for

domestic
consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods
and services. Main Features of GST Applicable On supply side: GST is applicable on ‘supply’ of goods or services as
against the old concept on the manufacture of goods or on sale of goods or on provision of services. Destination
based Taxation: GST is based on the principle of destination-based consumption taxation as against the present
principle of origin-based taxation. Dual GST: It is a dual GST with the Centre and the States simultaneously levying tax
on a common base. GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is
called State GST (SGST). Import of goods or services would be treated as inter-state supplies and would be subject to
Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties. GST rates to be mutually
decided: CGST, SGST & IGST are levied at rates to be mutually agreed upon by the Centre and the States. The rates
are notified on the recommendation of the GST Council. Multiple Rates: Initially GST was levied at four rates viz. 5%,
12%, 16% and 28%. The schedule or list of items that would fall under these multiple slabs are worked out by the
GST council. Legislative Basis Of GST In India, GST Bill was first introduced in 2014 as The Constitution (122nd
Amendment) Bill. 1/4 This got an approval in 2016 and was renumbered in the statute by Rajya Sabha as The
Constitution (101 Amendment) Act, 2016. Its provisions: Central GST to cover Excise duty, Service tax etc, State GST
to cover VAT, luxury tax etc. Integrated GST to cover inter-state trade. IGST per se is not a tax but a system to
coordinate state and union taxes. Article 246A – States have power to tax goods and services. GST Council Article
279A - GST Council to be formed by the President to administer & govern GST. It's Chairman is Union Finance
Minister of India with ministers nominated by the state governments as its members. The council is devised in such a
way that the centre will have 1/3 voting power and the states have 2/3 . The decisions are taken by 3/4 majority.
Reforms Brought About by GST Creation of common national market: By amalgamating a large number of Central
and State taxes into a single tax. Mitigation of cascading effect: GST mitigated ill effects of cascading or double
taxation in a major way and paved the way for a common national market. Reduction in Tax burden: From the
consumers’ point of view, the biggest advantage would be in terms of reduction in the overall tax burden on goods.
Making Indian products more competitive: Introduction of GST is making Indian products more competitive in the
domestic and international markets owing to the full neutralization of input taxes across the value chain of
production. Easier to administer: Because of the transparent and self-policing character of GST, it would be easier to
administer. Advantages of GST For the Government Create a unified common market: Will help to create a unified
common national market for India. It will also give a boost to foreign investment and “Make in India” campaign.
Streamline Taxation: Through harmonization of laws, procedures and rates of tax between Centre and States and
across States. Increase tax Compliance: Improved environment for compliance as all returns are to be filed online,
input credits to be verified online, encouraging more paper trail of transactions at each level of supply chain; st rd rd
th 2/4 Discourage Tax evasion: Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighbouring States and that between intra and inter-state sales. For Overall Economy Bring
about certainty: Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return,
common tax base, common system of classification of goods and services will lend greater certainty to taxation
system; Reduce corruption: Greater use of IT will reduce human interface between the taxpayer and the tax
administration, which will go a long way in reducing corruption; Boost secondary sector: It will boost export and
manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to
substantive economic growth; Ultimately it will help in poverty eradication by generating more employment and
more financial resources. For the Trade and Industry Simpler tax regime with fewer exemptions. Increased ease of
doing business. Reduction in multiplicity of taxes. Elimination of double taxation on certain sectors. More efficient
neutralization of taxes especially for exports Making our products more competitive in the international market.
Simplified and automated procedures for registration, returns, refunds and tax payments. Decrease in average tax
burden on supply of goods or services. For Consumers Transparent prices: Final price of goods is expected to be
transparent due to seamless flow of input tax credit between the manufacturer, retailer and service supplier. Price
reduction: Reduction in prices of commodities and goods in long run due to reduction in cascading impact of
taxation; Poverty eradication: By generating more employment and more financial resources. For the States
Expansion of the tax base:As states will be able to tax the entire supply chain from manufacturing to retail. 3/4 More
economical empowerment: Power to tax services, which was hitherto with the Central Government only, will boost
revenue and give States access to the fastest growing sector of the economy. Enhancing Investments: GST being
destination based consumption tax will favour consuming States. Improve the overall investment climate in the
country which will naturally benefit the development in the States. Increase Compliance: Largely uniform SGST and
IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighbouring States and that
between intra and inter-state sales Exemptions under GST Custom duty will be still collected along with the levy of
IGST on imported goods. Petroleum and tobacco products are currently exempted. Excise duty on liquor, stamp duty
and electricity taxes are also exempted. Challenges Of GST SCGT and CGST input credit cannot be cross utilized.
Manufacturing states lose revenue on a bigger scale. High rate to tax to compensate the revenue collected now from
multiple taxes i.e High Revenue Neutral Rate. The reduction in the fiscal autonomy of the States. Concerns raised by
banks and insurance companies over the need for multiple registrations under GST. The levy of additional cess. The
capacity of State tax authorities, so far used to taxing goods and not services, to deal with the latter is an unknown
quantity. The success of GST depends on political consensus, technology and the capacity of tax officials to adapt to
the new requirements. Conclusion Thus GST is a positive step towards shifting Indian economy from the informal to
formal economy. It is important to utilise experiences from global economies that have implemented GST before

us,to overcome the impending challenges. .

THE INCOME-TAX ACT, 1961 ____________ ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY
SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. “Previous year” defined. CHAPTER II BASIS OF
CHARGE 4. Charge of income-tax. 5. Scope of total income. 5A. Apportionment of income between spouses
governed by Portuguese Civil Code. 6. Residence in India. 7. Income deemed to be received. 8. Dividend income. 9.
Income deemed to accrue or arise in India. 9A. Certain activities not to constitute business connection in India.
CHAPTER III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME 10. Incomes not included in total income.
10A. Special provision in respect of newly established undertakings in free trade zone, etc. 10AA. Special provisions
in respect of newly established Units in Special Economic Zones. 10B. Special provisions in respect of newly
established hundred per cent. export-oriented undertakings. 10BA. Special provisions in respect of export of certain
articles or things. 10BB. Meaning of computer programmes in certain cases. 10C. Special provision in respect of
certain industrial undertakings in North-Eastern Region. 11. Income from property held for charitable or religious
purposes. 12. Income of trusts or institutions from contributions. 12A. Conditions for applicability of sections 11 and
12. 12AA. Procedure for registration. 13. Section 11 not to apply in certain cases. 13A. Special provision relating to
incomes of political parties. 13B. Special provisions relating to voluntary contributions received by electoral trust. 
Subject to verification and confirmation by the Department. 2 CHAPTER IV COMPUTATION OF TOTAL INCOME Heads
of income SECTIONS 14. Heads of income. 14A. Expenditure incurred in relation to income not includible in total
income. A.—Salaries 15. Salaries. 16. Deductions from salaries. 17. “Salary”, “perquisite” and “profits in lieu of
salary” defined. B.— [Omitted] 18. [Omitted.]. 19. [Omitted.]. 20. [Omitted.]. 21. [Omitted.]. C.—Income from house
property 22. Income from house property. 23. Annual value how determined. 24. Deductions from income from
house property. 25. Amounts not deductible from income from house property. 25A. Special provision for arrears of
rent and unrealised rent received subsequently. 26. Property owned by co-owners. 27. “Owner of house property”,
“annual charge”, etc., defined. D.—Profits and gains of business or profession 28. Profits and gains of business or
profession. 29. Income from profits and gains of business or profession, how computed. 30. Rent, rates, taxes,
repairs and insurance for buildings. 31. Repairs and insurance of machinery, plant and furniture. 32. Depreciation.
32A. Investment allowance. 32AB. Investment deposit account. 32AC. Investment in new plant or machinery. 32AD.
Investment in new plant or machinery in notified backward areas in certain States. 33. Development rebate. 33A.
Development allowance. 33AB. Tea development account, coffee development account and rubber development
account. 3 SECTIONS 33ABA. Site Restoration Fund. 33AC. Reserves for shipping business. 33B. Rehabilitation
allowance. 34. Conditions for depreciation allowance and development rebate. 34A. Restriction on unabsorbed
depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies. 35.
Expenditure on scientific research. 35A. Expenditure on acquisition of patent rights or copyrights. 35AB. Expenditure
on know-how. 35ABA. Expenditure for obtaining right to use spectrum for telecommunication services. 35ABB.
Expenditure for obtaining licence to operate telecommunication services. 35AC. Expenditure on eligible projects or
schemes. 35AD. Deduction in respect of expenditure on specified business. 35B. [Omitted.]. 35C. [Omitted.]. 35CC.
[Omitted.]. 35CCA. Expenditure by way of payment to associations and institutions for carrying out rural
development programmes. 35CCB. Expenditure by way of payment to associations and institutions for carrying out
programmes of conservation of natural resources. 35CCC. Expenditure on agricultural extension project. 35CCD.
Expenditure on skill development project. 35D. Amortisation of certain preliminary expenses. 35DD. Amortisation of
expenditure in case of amalgamation or demerger. 35DDA. Amortisation of expenditure incurred under voluntary
retirement scheme. 35E. Deduction for expenditure on prospecting, etc., for certain minerals. 36. Other deductions.
37. General. 38. Building, etc., partly used for business, etc., or not exclusively so used. 39. [Omitted.]. 40. Amounts
not deductible. 40A. Expenses or payments not deductible in certain circumstances. 41. Profits chargeable to tax. 42.
Special provision for deductions in the case of business f