GST- The Next Steps

GST Constitution Amendment Bill, having been passed by the Parliament, has now been ratified by 17 State Assemblies. Now the Bill will go to the President for assent, after which it will become Law. GST Council with representatives of the Centre and States will be notified after the Presidential Assent.

GST Coucil will decide the Rates of GST, the exemptions list, the Model Centre and State GST Laws, the threshold limits, etc.

GST Rates: There will be 5 slabs in GST, Exemption List for merit goods with 0% rate, Gold and Precious items are likely to be taxed at 2-3%; Essential Items at 12-14%; Standard Rate for most Goods/Services at 16-20%, and a Sin Goods which may be taxed at around 40%.

Threshold exemption limits has been fixed at Rs.10 Lakhs in the Model GST Law. However recently the Revenue Secretary Mr. Harmukh Adhia, said that "There will be an exemption limit for small traders and the limit is likely to be fixed at Rs 25 lakh. The states and the Centre are now involved in an intense discussion on this. More or less, we have reached an understanding that the limit will be up to Rs 25 lakh," It is expected that the threshold exemption limit is fixed somewhere between Rs.10 lakhs and Rs.25 lakhs.