PTI
NEW DELHI
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. 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.
The e-commerce companies will be required to file a statement to the tax department providing details of all supplies made through the online platform.
Revenue Secretary said the Empowered Committee of State Finance Ministers at their meeting in Kolkata approved the model GST law.
