Accounting for India's Forest Wealth - Madras School of Economics

4. THE GST: THREE VERSIONSThe basic idea of GST is to adhere closely to the principle of acomprehensive value added tax. Three versions of GST are currentlyunder Discussion suggested respectively by the Empowered Committeeof State Finance Ministers, Task Force of the Thirteenth FinanceCommission (which we may use as reference point as the 13 FC makesreference to it) and the Model GST of the Thirteenth FinanceCommission. In all three cases, the GST has two parts: central GST(CGST) and State GST (SGST). With a view to highlighting the similaritiesand differences between these proposals, we look at the following sixaspects of GST proposed by these models. These are: (a) broadstructure, (b) central and state taxes to be merged in GST (c) treatmentof inter-state sales, (d) rate structure, (e) threshold limits, and (f) placeof environmental taxes.Broad StructureThe broad structure of the GST is similar in all the three models. The GSTconsists of a central and state GST components (CGST and SGST) withthe following main features:i. The basic features of law such as chargeability, definition oftaxable event and taxable person, measure of levy includingvaluation provisions, basis of classification etc. should beuniform across these statutes as far as practicable.ii.The CGST and SGST would be applicable to all transactions ofgoods and services made for a consideration except for theexempted goods and services, goods which are outside thepurview of GST and the transactions which are below theprescribed threshold limits.iii. The CGST and SGST are to be paid to the accounts of theCentre and the States separately. Taxes paid against the CGST16