The revised model GST law has also proposed an anti- profiteering mechanism to ensure benefit of lower taxes is shared with consumers, and also ensures no tax on securities and subsidies provided by the government. The Draft GST law is a model which the central government and each of the state governments would use to draft their respective central and state GST Acts.

The political demand for a rate cap has been addressed in the model IGST law by prescribing a cap of 28 percent. The state GST rates may be slightly higher than the central GST rates and so slightly different caps for CGST and SGST. Securities had been included as goods in the first draft model GST law. It was a massive departure from the current VAT and service tax laws, which never taxed securities. The transition provisions now deals with situations of first and second stage dealer and dealer importers to maintain the credit chain. Many countries implemented anti-profiteering measures under their GST laws to curb retention of benefits by business, such measures were absent in the earlier draft. The new draft clearly provides for anti-profiteering measures. It is designed to protect the common man.

The concept of composite supply and mixed supplies has been dealt with effectively. Composite supplies would be treated as the supply of goods or service which plays the dominant role. Mixed supplies would be taxed at the highest rate of goods or service comprising such mixed supply. The point of taxation law has been simplified by clear references to date of invoice generation and receipt of consideration. The place of supply shall be the location of importer in case of import of goods and the location outside India in case of export of goods. In case the supplier or recipient of service is located outside India, separate provisions have been made for such a scenario, special economic zone supplies have also been covered and defined as inter-state supply.

The government has listened to the real concerns and has made an honest attempt to ensure the GST law is as clear as possible and make the transition as smooth as possible. This draft shall provide encouragement to business that GST will ultimately result in benefits for both itself and its customers. In the revised GST law wherein the said Schedule has been revised to remove such transaction from the ambit of ‘supply’. This means that such perquisites enjoyed by employees will not attract GST ,irrespective of whether they are used for business purposes or personal consumption. The new place of supply provisions introduced for services are almost similar to the place of provision of service(pops)rules present under the current service tax law. The revised GST law has broadened the scope of place of supply, it has also broadened the possibilities of litigation that may arise under the GST regime. The government has heeded the pleas of various sections of industry in revising the law and has tried to incorporate the representations made by them.