Post implementation of GST, following Central Taxes would get subsumed into GST
- Excise Duty,
- Additional Excise Duty,
- Service Tax including applicable surcharges;
- Additional Customs Duty or Countervailing Duty as it is called;
- Special Additional Customs Duty.
- State Level
At State Level, the taxes that would be subsumed into GST would be –
- State Value Added Tax/Sales Tax,
- Central Sales Tax, Entertainment Tax.
- Octroi and Entry tax,
- Purchase Tax,
- Luxury tax, and
- Taxes on lottery, betting and gambling.
It may be noted that taxes, if any levied by Local bodies, by whatever name called would not get subsumed into GST
As these taxes get subsumed, only Central GST (CGST), State GST (SGST) and Integrated Goods and Services Tax(IGST), besides taxes if any levied by local bodies would be payable
Thus GST would be levied by both Centre and State on all transactions. Respective input credit against CGST or SGST would be payable at each stage while determining the tax liability. CGST would be administered by Centre and SGST would be administered by respective state. However cross input credit i.e. of CGST with SGST or vice versa will not be available
At the time of sales, both CGST and SGST would be levied at same value. Presently VAT or CST is levied after adding Excide duty, however, post GST regime, since excise duty would not be applicable any more, these taxes would be levied only on basic value.
Levy of Taxes on Composite transactions of Goods and Services. While computing tax and allowing credit for inputs, the assessee can avail cross input credit for Goods or Services, however, the cross credit between CST and SGST would not be available.
Taxation of Interstate Transaction of Goods and Services in GST Regime- In case of Interstate transactions of Composite Goods and Services, Centre, under the provisions of Article 269A(1) of the constitution, would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services.
The IGST rates would be so fixed to be roughly equal to total of CGST and SGST. The assessee would pay this IGST at the time of sales of goods to the credit of Central Government after adjusting credit of IGST, CGST and SGST on his purchases.
The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST.
Subsuming of Customs Duty on Imported Goods
Additional customs duty or Special additional customs (countervailing duty) duty Additional Duty presently being levied on imports will be subsumed under GST.
other than local taxes, all taxes will get subsumed in gst, – assesses will not have to face multiple assessments under various taxes
Under GST regime, IGST would be levied on all imports entering India and the state importing these goods would gain their share from such IGST levied