The Odisha Assembly on Wednesday held a workshop on the proposed State Goods and Services Tax (GST) Bill for legislators ahead of its special session to be convened tomorrow.

The legislators were briefed about the benefits and salient features of the bill and the role of GST council at the workshop. In the same vein, The Telegraph explores some frequently asked questions about GST.

• What is Goods and Services Tax?

It is a destination-based tax (it will accrue to the taxing authority having jurisdiction over the place of consumption) on consumption of goods and services proposed to be levied on all stages of manufacture to final consumption.

• Type of GST proposed to be implemented

There will be dual GST - central GST and state GST - to be levied by the Centre and the states, respectively on intra-state supply of goods and services.

Besides, the Centre will levy integrated GST (IGST) on every inter-state supply of goods and services.

• What are the state taxes that will be subsumed under the state GST?

Value added tax (VAT), central sales tax, luxury tax, entry tax, entertainment and amusement tax (except levied by local bodies), taxes on advertisements, purchase tax, taxes on lotteries, betting and gambling and state surcharges and cesses are within the purview of the bill.

• Commodities proposed to be kept out of GST purview

Alcoholic liquor for human consumption, electricity and 5 petroleum products - petroleum crude, motor spirit (petrol), high-speed diesel, natural gas and aviation - have been temporarily kept out of GST purview.

• What will be the status of tobacco and tobacco products?

GST will be levied on tobacco and tobacco products. Besides, the Centre will levy central excise duty on these products.

• The benefits from GST...

It will pave the way for a common national market. The tax burden on most commodities is expected to come down. Besides, the government will get the benefit of higher revenue efficiency.

• Who will decide GST rates?

The rates will decided by the Centre and states jointly and will be notified on the recommendations of the GST council.

• What will be the composition of GST Council?

Union finance minister will head the council. Minister of state (revenue) and the state financeaxation ministers will be its members.