The proposed GST structure is two-tiered, whereby tax would be levied by both Centre and state on intra-state supply of goods or services viz. the Central Goods and Service Tax (GCST) and State Goods and Service Tax (SGST) respectively. Credit of the above taxes would be available throughout the entire supply chain and the ultimate burden would be borne by the customer. 

In case of inter-state transactions, Inter-State Goods and Service Tax (IGST) would be levied by the Centre.  Also, the Constitutional Amendment bill provides for creation of a GST Council comprising all the stake-holders across the Centre and the state. The GST Council would recommend the rate of tax with bands. 

As and when GST becomes law, it will translate into Indian economy into a single market and bring uniformity in tax rates across the country. The GST constitution amendment bill at present is stuck in Rajya Sabha, where the ruling National Democratic alliance (NDA) lacks a majority. The Government may seek voting on the said bill in the Monsoon Session of Parliament, in case Congress party continues to oppose the long-pending indirect tax law. 

We should keep our fingers crossed as the Government is hopeful that it will get GST constitution amendment bill passed in the forthcoming Monsoon Session of Parliament. 

—The author is Founder and Managing Partner of Anand Law Practice. He can be reached at Kamalkanand@anandlawpractice.com