MAIN FEATURES OF GST LAW (AS RECOMMENDED BY GSTC)

 Taxable event: 

 Tax on supply of goods or services rather than manufacture / production of goods, provision of services or sale of goods 

 Powers to declare certain supplies as supply of goods or of services – Schedule II 

 Powers to declare certain activities/transactions as neither supply of goods nor of services - Schedule III 

 On Intra-State supplies of goods or services - CGST & SGST shall be levied by the Central and State Government respectively, at the rate to be prescribed 

 Maximum rate ring fenced in law

  On Inter -State supplies of goods or services - IGST shall be levied by the Central Government, at the rate to be prescribed 

 Maximum rate ring fenced in law 

 Determination of nature of supply: 

 Elaborate Rules provided for determining the place of supply 

 Intra-State supply of goods or services - where the location of the supplier and the place of supply are in the same State

  Inter-State supply of goods or services - where the location of the supplier and the place of supply are in different State

 Liability to pay: 

 Liability to pay tax arises only when the taxable person crosses the exemption threshold