With the issuance of revised model GST law, the countdown to implement much awaited Goods & Service Tax on 01.04.2017 has begun. It is required to recall here that on June 14th, this year, the aforesaid revised model was share for public feedback and now it is here with all the revisions based on the comments of public.
The major changes in the revised model include clear exclusion of securities from the definition of goods. Goods now means”every kind of movable property other than money & securities.” Another change is removal of ambiguity over taxation of supply to SEZ units, it is now clear that the same will avail all benefits available in the existing law. Inclusion of new provisions regarding “place of supply”, “use of business assets & services for private or Non-Business use”, “supplies made by principal to agent & vice-versa” are some of the other remarkable revisions.
But the most significant one is the introduction of ANTI-PROFITEERING which ensures responsibility of companies to pass the benefits of GST to ultimate consumers. The clause is dedicated to the fair price chargeability & transparency in price mechanism.
Though all the above will surely come out with positive impacts but despite expected positive outcomes the law certainly has many complications & it will be worth watching what challenges will the current government face for getting it pass from both houses & later by the ultimate consumers.
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