All online purchases to attract GST, says model law
14 June 2016
All purchases made online will be taxed at a uniform rate as per the model Goods and Services Tax laws approved by the Empowered Committee of State Finance Ministers at their meeting in Kolkata today.
The GST is likely to take effect from April next year, according to finance minister Arun Jaitley.
Since the tax, in lieu of local levies, will be imposed at the first point of financial transaction, GST becomes applicable in e-commerce in cases where goods were being sold in one state but was being bought in another state.
The model GST law prescribes a threshold of Rs9 lakh annual turnover for applicability of the new levy and Rs4 lakh for businesses in North Eastern states, including Sikkim.
Revenue Secretary Hasmukh Adhia said the Empowered Committee of State Finance Ministers at their meeting on Tuesday in Kolkata approved the model GST law.
"We request all stakeholders to give their suggestions/ comments to secretariat of Empowered Committee of FMs and or to finance ministry," Adhia tweeted.
Government is hoping to get the Constitution Amendment Bill passed by Parliament in the upcoming Monsoon Session. It plans to roll out GST from 1 April 2017 that will subsume excise, service tax and all local levies.
Virtually all states have supported the idea of GST except Tamil Nadu which has "some reservations", finance minister Arun Jaitley said after the meeting of Empowered Committee on the long awaited indirect tax reform.