gst in india  


VAT Service Tax India
Service Tax New Delhi
Central Excise and Service Tax
Service Tax Cenvat
Service Tax Exemption
Service Tax Tribunal

Justification of GST
Preparation for GST
Purchase Tax of GST
GST Rate Structure
VAT at the Central & State level
Goods & Services Tax Model For India
Central and State Taxes under GST
Special Industrial Area Scheme
Inter-State Transactions of Goods
Rules for CGST and SGST
Implementation of GST

Central and State Taxes to be subsumed under GST

The various Central, State and Local levies were examined to identify their possibility of being subsumed under GST. While identifying, the following principles were kept in mind:

  • Taxes or levies to be subsumed should be primarily in the nature of indirect taxes, either on the supply of goods or on the supply of services.
  • Taxes or levies to be subsumed should be part of the transaction chain which commences with import/ manufacture/ production of goods or provision of services at one end and the consumption of goods and services at the other.
  • The subsumation should result in free flow of tax credit in intra and inter-State levels.
  • The taxes, levies and fees that are not specifically related to supply of goods & services should not be subsumed under GST.
  • Revenue fairness for both the Union and the States individually would need to be attempted.

On application of the above principles, it is recommended that the following Central Taxes should be, to begin with, subsumed under the Goods and Services Tax:

  • Central Excise Duty
  • Additional Excise Duties
  • The Excise Duty levied under the Medicinal and Toiletries Preparation Act
  • Service Tax
  • Additional Customs Duty, commonly known as Countervailing Duty (CVD)
  • Special Additional Duty of Customs - 4% (SAD)
  • Surcharges, and
  • Cesses.

Following State taxes and levies would be, to begin with, subsumed under GST:

  • VAT / Sales tax
  • Entertainment tax (unless it is levied by the local bodies).
  • Luxury tax
  • Taxes on lottery, betting and gambling.
  • State Cesses and Surcharges in so far as they relate to supply of goods and services.
  • Entry tax not in lieu of Octroi.

 

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