Senior tax consultant and GST exponent RS Goyal has said Madhya Pradesh would get immense benefit from Goods and Service Tax (GST). The new tax will also help traders as there would be no ‘double taxation’.

Goyal was addressing a seminar held to explain the provisions made in the GST. It was organized by Shrimant Maharaja Tukojirao Cloth Market Merchants Association here on Friday. Goyal elaborated several provisions made in the GST including VAT, entry tax, Central Sales Tax, exemption from Central Excise Duty and provisions of penalty etc.

Goyal further said that after implementation of the GST, there is no need to obtain C-form and F-form on sales made outside the state and exports made outside the country.

Four rates of the tax would be included in the CGST and SGST. Very essential commodities would bear GST of only 5%, while essential goods and commodities would invite 12%. Luxury goods would attract 12% tax and while goods like cigarette, pan masala etc would be taxed heavily at the rate of 28%. It is said that cess of 12% to 18% would be charged extra from these negative goods.

Just two slabs—12% and 18%— are likely to be levied. CGST and SGST would be charged separately by the state and Union governments on single transaction but these have to be paid in a single chalan.

Composition facility is being made available for small traders, through which they can get rid of long process of GST by paying 1.1% composite fee. The most relaxing point in the new indirect tax regime would be from taking round of the departments as all process will be online.

At present 0 to 12% central excise duty is charged on textile items. As VAT is not applied on them, the GST rate would be 5%. Textile items would get rid from entry tax.

Penal provisions in GST

Goyal also said people about penal provisions in the GST. He said that a trader would have to pay a fine of Rs 10,000 on non-filing of return, issuing wrong bill, exemption taken mischievously, not getting registration and transportation of goods without valid documents. Similarly, one year imprisonment on tax evasion of Rs 50 lakh to Rs 1 crore for giving fictitious input of tax rebate or refund, imprisonments of 3 years on tax evasion of Rs 1 crore to Rs 2.5 crore and five years imprisonment and other fines if the amount of tax evasion is above Rs 2.5 cr.