Page 26 - Cafe-Social-September-2019

Destination-Based: Consider goods manufactured in Madhya Pradesh and are sold to the final consumer in
Karnataka. Since Goods & Service Tax is levied at the point of consumption. So, the entire tax revenue will go to
Karnataka and not Madhya Pradesh.

TRANSACTION NEW REGIME OLD REGIME

Sale within the State CGST + SGST VAT + Central Revenue will be shared equally
Excise/Service tax between the Centre and the State
There will only be one type of tax
Central Sales Tax + (central) in case of inter-state sales. The
Sale to another State IGST
Excise/Service Tax Centre will then share the IGST revenue
based on the destination of goods.

Goods and Services Tax Council (GSTC) is a ? 20 lakhs and in case of Special Category States at ? 10
Constitutional Body created for taking policy decisions lakhs. This would be made effective from 01.04.2019.
about introduction and implementation of GST.
The introduction of e-way (electronic way) bill is a
After the 32nd GST Council meeting held on monumental shift from the earlier “Departmental
10.01.2019, there would be two threshold limits for Policing Model” to a “Self-Declaration Model”. It
exemption from registration for suppliers of Goods i.e. envisages one e-way bill for movement of the goods
? 40 lakhs and ? 20 lakhs. States would have an option throughout the country, thereby ensuring a hassle free
to decide the threshold. However, the threshold for movement for transporters throughout the country. The
registration for Service Providers would continue to be e-way bill system has been introduced nation-wide for
all inter-State movement of goods with effect from 1st

The implementation of the Goods and Services Tax (GST) has created a common
national market and reduced the overall tax burden on goods. It is expected to reduce
costs in the long run on account of availability of GST input credit, which will result in
the reduction in prices of services.