President Approves Chandigarh GST (UTGST)

By Tricitynews Reporter

Chandigarh 13^th April:- Union Territory Goods and Services Tax Bill has got the assent of H’ble President of India and now it is Union Territory Goods and Services Tax Act 2017. This act shall be unanimously applicable to all the union territories except Delhi and Pondicherry. The UTGST Bill is replica of Central GST law. The maximum rate proposed under the Act is 20%. Now if a registered person supplies goods or services or both within Chandigarh itself he shall now be charging Central Goods and Services tax and Union Territory Goods and Services Tax.

Keshav R Garg, Chartered Accountant, said that when the goods are sold to another state from Chandigarh, Integrated Goods and Services tax shall be levied. GST will give the seamless flow of credit of tax. It is expected that GST will reduce the prices of goods and services. Post GST all the indirect taxes like Services Tax, Excise Duty, Value Added Tax, Entertainment Tax, Luxury Tax, Octroi will become one tax - GST. Road Tax, Toll Tax, Stamp duty, Electricity duty, Duties on alcoholic liquor for human consumptions shall continue to levy even after GST.  GST in Chandigarh shall now be monitored by the Central Government as other Union territories. There shall be no power with Chandigarh Administrator with respect to levy and charge-ability of indirect tax in Chandigarh. All the decisions shall now be taken by Central Government after recommendations from GST Council.

Benefit to various Category of People.

Traders:  Credit of taxes paid on purchase of capital goods from a manufacture which was earlier not available shall now be available under GST.

Manufacturer: Since GST will bring uniform taxes all across the country, whole India shall now be an open market for purchase of raw material and other inputs. He can now sell goods all across country as there shall be seamless flow of goods, no obstruction whatsoever.

Professionals: Professionals shall be allowed to take credit of the goods they purchase for their practice, which was earlier not allowed. This will reduce their cost of services and hence good quality service shall be given at cheaper rates.

Foreign Investors: Since GST will do away multiplicity of tax and bring ease of doing business in India, It shall encourage them to invest more and more in our country. The products like Apple I-phone etc. shall become cheaper.

Consumers: Consumers shall be benefited to a large extent. They shall now remain aware of tax, as only one tax remains after GST. The prices of goods and services except a few will go down.