GST puts to rest the 1% levy on stock transfers

GST is on its way to being implemented. The concept has been here since 2006, frequently appearing in the Finance Minister’s Budget speech. The Rajya Sabha Committee, which was asked to review the GST bill, has recommended one per cent additional tax on origination basis, which is not creditable, to be applicable only for sale of goods and not on stock transfers. This puts to rest the one per cent levy on stock transfers which was proposed earlier. This could operate similar to the current CST levy. Of course, the c-forms are done away with under GST regime.

MS Vasan Director – Finance, General Motors India