GST will be levied at the first point of transaction in sales of goods and services under the regime of uniform Goods and Services Tax (GST) likely to be rolled out in April 2017.
The model GST law, circulated in the meeting of Empowered Committee of State Finance Ministers on Tuesday, said a threshold annual turnover for levy of the tax will be at Rs 10 lakh. For North East and Sikkim, the limit will be at Rs 5 lakh.
The model GST law has 162 clauses and four schedules.
In case of tax evasion, maximum imprisonment of five years with a fine was suggested.
The law also proposes for setting up of an Authority for Advance Ruling and a 'Composition Levy' for entities with turnover of Rs 50 lakh.
The central government is hoping to get the Constitution Amendment Bill passed by Parliament in the upcoming Monsoon Session. It plans to roll out GST from April 1, 2017.
More From This Section
Virtually all states have supported the idea of GST except Tamil Nadu which has "some reservations", Finance Minister Arun Jaitley said after the meeting of Empowered Committee on the long awaited indirect tax reform.
--IANS
bdc/vd