GST Proposed Structure

GST considered to be a watershed reform in the field of Indirect

Taxation
And expected to re-invent and revitalize the Indirect tax structure

Proposal, in its present form, is to implement a dual GST model,

comprising of a Central GST (CGST) and State GST (SGST)
Integrated GST (IGST) to be levied to tax inter-State transaction of
goods and services
Rate of tax will be combined rate of CGST and SGST

Both CGST and SGST will be levied on import of goods and

services into the country. The incidence of tax will follow the
destination principle

Centre and the State will concurrently legislate, administer and levy
tax on all supplies of goods and services

Complete fungibility of credits

Snapshots of Proposed GST

Levy

to cover all transactions of goods and

services made for a consideration except:-

Goods and services outside the purview of GST

Alcoholic beverages and petroleum

products
Transactions which are below threshold
limits
Exempted goods and services
Exports

to be zero-rated

Taxes proposed to be subsumed into GST

Dual GST

Levies and Credits under GST

Transaction

Intra-State

Inter-State

Sale of goods

CGST + SGST

IGST

Provision of services

CGST + SGST

IGST

Imports

CGST + SGST

Exports

Zero-rating

Credit of

Can be utilised against liability of

CGST

CGST and IGST

SGST

SGST and IGST

IGST

IGST, CGST and SGST

Seamless credit chain

Time-bound refunds of credits in cases such as exports and inverted duty structures

Though cross utilisation of tax credit between CGST and SGST is in general not
allowed, the IGST mechanism will make these credits fungible