It will be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
Tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption — Rs20 lakh (Rs10 lakh for NE states) except in certain specified cases where the taxable person is liable to pay GST
even though he has not crossed the threshold limit. The CGST/SGST is payable on all intra-state supply of goods and/or services and IGST is payable on all interstate supply of goods and/or services.
A GST Council comprising the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers make recommendations to the Union and the States on all matters relating to GST. The CGST and SGST would be levied at rates to be jointly decided by the Centre and States. The rates would be notified on the recommendations of the GST Council. GSTN is a special purpose vehicle set up to cater for the needs of GST. The GSTN shall provide a shared IT infrastructure and services to central and state governments, tax payers and other stakeholders.
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