Goods and Services Tax Identification Number (GSTIN),REVENUE NEUTRAL RATE (RNR),GST Compensation Cess, Anti-Profiteering Rules

 

                    

Goods and Services Tax Identification Number (GSTIN):

• Goods and Services Tax Identification Number (GSTIN) is a 15 alphanumeric character, PAN based distinctive number, assigned to every GST registered entity.
• Goods and Services Tax Identification Number (GSTIN) provides unique identity to the business entity in the GST regime. 

REVENUE NEUTRAL RATE (RNR):  

• GST rate at which the amount of taxes collected by the government in pre-GST regime and the amount expected to be collected post- GST remains the same.
• In Pre-GST era, state governments were having various taxation powers while post GST states lose taxation powers.
• So, REVENUE NEUTRAL RATE (RNR) ensures that the states don’t loose their revenue in the wake of GST regime.

GST Compensation Cess :

• GST Compensation Cess is levied on inter- and intra-State supply of notified goods such as aerated drinks, coal, tobacco, automobiles.
• The objective of GST Compensation Cess  proceeds is to distribute the Cess proceed to loss-incurring States on the basis of a prescribed formula so as to compensate the loss making states. 
• GST Compensation Cess was introduced through the GST (Compensation to States) Act, 2017 for initial 5 years
  
  . 
• The tenure of GST Compensation Cess has been extended to 31 March ,2026.

Composition Levy:

• The composition levy is taxation imposed upon small , small, micro and informal units taxpayers whose turnover is up to Rs. 1.5 Cr ( Rs. 75 lakhs in case of few States).
• The objective of Composition Levy is to bring simplicity and to reduce the compliance cost for the small taxpayers.   
• Composition Levy is to be levied upon the turn over and it is optional. 
• Eligible person opting to pay tax under Composition scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate. 
• Entities opting for composition levy can do their business activities within the state as restricted to do Inter- state business.

Anti-Profiteering Rules : 

• As per Anti-profiteering rules, the suppliers of goods and services have necessarily pass on the benefit of any reduction in the rate of tax or the benefit of input tax credit to the recipients by way of commensurate reduction in prices.
• The willful action of not passing the benefits on account of change in the rates and Input Tax Credit (Understanding Economy from basics to an expert perspective from a Guide ,Teacher and Practitioner: INPUT TAX, Input Tax Credit) to the recipients is known as “Profiteering”.
• National Anti-profiteering Authority (NAA) was set up  as statutory body under Section 171 of the Central Goods and Services Tax Act ,2017 to deal with  Anti-profiteering rules
• The objective  of  NAA was to ensure the implementation of Anti-Profiteering Rules 
• After the end of the tenure of this body on dec 2022,all powers are vested in Competition Commission of India .