We all are sure that the government would not take long to implement GST .Here are few things that you need to understand about proposed model of GST.
India intends to adopt a dual GST which will be imposed concurrently by the Centre and the States. The dual model was propounded in the First Discussion Paper released by the Empowered Committee with an objective to do away with the problem of tax base as also to subsume various Central and State levies on goods and services into Central Goods and Services Tax(CGST) and State Goods and Service Tax (SGST).The Dual Model GST discussed in the subsequent paragraph is essentially the one as conceptualized in the First Discussion Paper.
GST will have a dual rate structure comprising of CGST, which will be levied and collected by State Governments.
Another model used to ease the collection of GST is called Integrated GST (IGST). An integrated Goods and Service Tax (IGST) model will be used to tax inter-state supply of goods and services. Under this model, IGST- which would be approximately a sum total of CGST and SGST- will be levied by Centre on all inter-State of taxable goods and services. The inter-State supplier in the exporting State will be allowed to set off the available credit of IGST, CGST and SGST (in that order) against the IGST payable on inter-State supply made by him. The buyer in the importing State will be allowed to avail the credit of IGST paid on inter-State purchase made by him. Thus, unlike the existing scenario where the account of non-Vatable CST, under GST regime there will be seamless credit flow in case of Inter-state supplies too
Since GST will be a destination based tax, the revenue of inter-State sale will not accrue to the exporting State will be required to transfer to the Centre the credit of SGST used in payment of IGST. The Centre Agency to act as a clearing house and verify the claims and inform the respective Governments to transfer the funds. Successful execution of IGST model would require robust and efficient IT infrastructure