TEN Commandments for a pure GST – Thou shall!

By Vijay Kumar

ACCORDING to the TASK FORCE the most important ten elements of a pure GST are the following:-

1. The base should extend to all goods and services including immovable property;

2. There should be a single low rate ;

3. The tax should be destination based ;

4. The tax should be designed on invoice-credit method ;

5. Full and immediate input tax credit in respect of capital goods ;

6. The GST must replace all transaction based taxes on goods and services and factors of production.

7. There should be seamless flow of the tax through all stages of production and distribution so as to stick on “final” consumption;

8. The exports should be zero rated and imports should be fully taxed ;

9. There should be a threshold exemption for small dealers;

10. Full computerisation of the compliance and administrative systems.