14th April 2017
Money bill on GST has been passed by the President. UT GST (Union Territory Good and Services Tax) bill has got the assent of President of India. This act is a replica of the Central GST law (CGST) will effective on July 1.
Chandigarh has become first in region to have GST Act as the states are yet to pass their Act. 20% is the Maximum rate proposed under the UT GST Act 2017. In case of registered person supplies goods or services or both within Chandigarh he will be charging the Central GST and the UT GST. The Integrated GST will be levied when goods are sold to another state.
GST will reduce the prices of goods and services. Post-GST will include indirect taxes like service tax, excise duty, value added tax(VAT), entertainment tax, luxury tax, octroi, road tax, toll tax, stamp duty, electricity duty will become one tax
The schedules are clear i.e. 5%, 12% 18% and 28% but the list of items under these rates are yet to come.
Duties will be levied on alcohol for human consumption after GST.GST in the city shall now be monitored by the Centre as is the case in other UTs. UT administrator shall have no power with respect to levy and charge-ability of indirect tax.
HOW GST AFFECTS YOU
Consumers will benefit to a large extent. Goods and Services prices are expected to go down. Products like high-end phones etc will become cheaper.
Credit of taxes paid on purchase of capital goods (used for business growth) from a manufacture .
The entire country shall now be an open market for purchase of raw material and other inputs. Since, GST will bring uniform taxes all across the country. There shall be smoother flow of goods without any obstruction.
It will be easier for professionals to take credit of the goods they purchase for their practice, which was earlier not allowed. There will be reduction the costs, implying that good quality service shall be given at cheaper rates.
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