Monday, April 3, 2017

Taxes to be Subsumed into CGST and SGST

The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified. The GST would replace the following taxes currently levied  and collected by the Centre:

Taxes to be Subsumed into CGST 

The following Taxes to be subsumed into CGST (Central Goods and Service Tax)
  1. Excise Duty
  2. Service Tax
  3. SAD
  6. CVD
  7. Medicinal Excise

Taxes to be subsumed into SGST

The following Taxes to be subsumed into SGST (State Goods and Service Tax)
  1. VAT / Sales Tax
  2. Entry Tax /Octroi / LBT
  3. Purchase Tax 
  4. Taxes on lottery, betting and gambling 
  5. Luxury Tax
  6. Entertainment Tax 
  7. State Cesses & Surcharges 

GST will be applicable on all Goods & Services EXCEPT
  1. Alcoholic Beverages for Human Consumption – State Excise Duty to Continue
  2. Effective date for Petroleum Products will be notified later
  3. Industrial incentives to be converted into investment link cash subsidy
  4. Special Industrial Area Schemes to be also converted into investment based through their validity period / Grandfathering of exemptions by way of refund of direct cash and no upfront exemption
  5. Common list of exemption for CGST & SGST
  6. Transactions which are below threshold limits


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