Highlights of New Proposed Goods & Service Tax (GST)

  1. The basic principal governing behind GST is to have single Taxation System for Goods and Services across the country. Currently Indian economy has various taxes on Goods and services such as VAT, Service Tax, Excise, Entertainment Tax, Luxury Tax Etc. now in the new Proposal of GST; we will be having only two taxes on all goods and Services as follows:
    1. State Level GST(SGST)
    2. Central Level GST (CGST)
  2. In case of Central GST, following Taxes will be subsumed with CGST which are at presently levied separately on goods and services by Central government:
    1. Central Excise Duty
    2. Additional Excise Duty
    3. The Excise Duty levied under Medicinal and toiletries preparation Act
    4. Service Tax
    5. Additional Custom Duty (CVD)
    6. Special Additional Duty
    7. Surcharge
    8. Education Cess and Secondary and Higher Secondary education Cess
  3. In case of State GST, following taxes will be subsumed with SGST; which are priestly levied on goods and services by State Governments :
    1. VAT/ Sales Tax
    2. Entertainment Tax (unless it is levied by local bodies)
    3. Luxury Tax
    4. Tax on lottery
    5. State Cess and Surcharge to the extend related to supply of goods and services.

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