MONEY
Online shopping may soon become costlier as all purchases made online will attract a uniform Goods and Services Tax, according to the model Goods and Services Tax (GST) law approved by state finance ministers on Tuesday.
GST is likely to take effect from April next year. The tax, in lieu of local levies, will be imposed at the first point of financial transaction. This clears the air on applicability of GST in e-commerce in cases where goods were being sold in one state but was being bought in another state.
The model GST law, which has 162 clauses and four schedules, has also suggested a jail terms of up to five years and fine for violation of the provisions of the statute.
It prescribes a threshold of ₹9 lakh annual turnover for applicability of the new levy and ₹4 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 April 1, 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.