Tax Structure of GST, Taxation Structure of Goods and Service Tax

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Tax Structure of GST. GST Tax Structure. Taxation Structure of Goods and Service Tax. Check Complete details for Proposed Tax Structure of GST in India. After Providing “GST Model For India – Proposed, Central and State GST“. Under the proposed concurrent dual GST model for India, the following taxes shall be levied on the supply of goods and services. Recently we provide complete details for GST Registration, GST Login Procedure, GST Rates 2017, GST Return Online Process, GST Refund Details, HSN Code List etc…

Contents

Tax Structure of GST, Goods and Service Tax Taxation Structure

  • CGST – Central Goods and Service Tax
  • SGST – State Goods and Service Tax
  • IGST – Integrated Goods and Service Tax/ (CGST+SGST)

Additional Tax (upto 1%) to be levied in case of inter-state supply of goods, which is a non-vatable item. Hence, no input credit available on such.

 

Taxes to be subsumed under GST Structure:

Post implementation, the following Central and State indirect taxes would be subsumed in GST and existing indirect taxes takes the form of CGST, SGST and IGST as per above proposed model.

Central taxes to be subsumed in GST

  • Central Excise Duty
  • Additional Excise Duties,
  • Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties) Act 1955
  • Service Tax,
  • Additional Customs Duty (Countervailing Duty)
  • Special Additional Duty of Customs – 4% (SAD),
  • Central Surcharges and Cesses in the nature of taxes on goods/services like cess on rubber, tea, coffee, national calamity contingent duty etc

State taxes to be subsumed in GST

  • State VAT/Sales Tax,
  • Entertainment tax (unless it is levied by the local bodies),
  • Luxury Tax,
  • Taxes on lottery, Betting and gambling.
  • Tax on advertisements,
  • State Cesses and Surcharges in the nature of taxes on goods/ services
  • Octroi and Entry Tax
  • Purchase tax

State taxes to be subsumed in GST

Some of the taxes that would be continued under GST regime are Basic customs duty, property tax, stamp duty, vehicle tax etc.

Alcoholic liquor for human consumption is exempted from the purview of GST and tobacco products would be subject to separate excise duty in addition to GST. Further, the petroleum products would be continued to be taxed as per the existing laws and would be transitioned into GST regime from a future date to be notified by the GST Council.

Conclusion

The GST has the potential to push India’s GDP by 1% -2% and as rightly pronounced in Economic Survey 2015-16, GST “is a reform perhaps unprecedented in modern global tax history”. With the implementation of GST, the taxpayers will breathe a sigh of relief as they are likely to get free from the requirement of multiple compliances under various states, as the proposed GST regime provides for a single registration and a single return. Further, it provides major impetus to MAKE IN INDIA initiative of Government of India by attracting new foreign investments and by reducing manufacturing cost in the form of reduced compliance cost and taxes.

 

On our website we have provided all the details of GST Act 2017. We hope that our article will be helpful for you to understand the GST Act 2017.

 

Check also:

GST Challenges Ahead – Important provisions in GST and its impact

GST Registration Procedure for Existing Goa VAT Dealers in Detailed

 

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