Sale of goods and services and all online purchases will attract GST at the first point of transaction with the likely rollout of uniform Goods and Services Tax (GST) regime from April 2017.
The model GST law, approved by the state finance ministers on Tuesday, pegged threshold annual turnover for levy of the tax at Rs 10 lakh. The limit will be Rs 5 lakh in North East and Sikkim.
The model GST law, which has 162 clauses and 4 schedules, has also suggested a jail terms of up to 5 years and fine for violation of the provisions of the statute.
The law also provides for setting up of an Authority for Advance Ruling, Consumer Welfare Fund, a 'Composition Levy' for entities with turnover of Rs 50 lakh and self assessment by a tax payer.
The GST, which will subsume excise, service tax and local levies, will be imposed at the first point of transaction in case of supply of goods, services or online sale.
This clears the air on applicability of GST in e-commerce in cases where goods are sold in one state but delivered in another state.
>> Details on pg 7
