Thursday, June 22, 2017

Which of the existing taxes are not subsumed under GST?

The GST will not replace the following taxes:
  • Taxes currently levied and collected by the Centre: Taxes on income, wealth or gifts (never included in a GST kind of tax); Basic Customs Duty (never included in GST, being tariff barrier); Duty of Excise on tobacco and tobacco products (normally levied over and above GST); Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freights; Central Stamp Duties; Oil Industries Development Act Cess (OIDB Cess) (as petroleum is kept outside GST); Clean Environment Cess. [GST (Compensation to States) Act, 2017 has proposed levy of cess on all goods which are presently subject to Clean Environment Cess at the rate on which such cess is levied presently. This indicates Government’s decision to abolish levy of cess in current form but recover it in a different form The cess levied under GST (Compensation to States) Act will be eligible for input tax credit for payment of cess levied under the same Act as against present levy which is not eligible for input tax credit.]  
  • State taxes that would not be subsumed under the GST are: Fees in respect of markets and fairs (Mandi fees); Taxes on lands and buildings (property tax); State Stamp Duties; Taxes on mineral rights; Electricity Duty; Taxes on goods and passengers carried by road or on inland waterways; Taxes on vehicles (Road Transport Authority); Tolls; Taxes on professions, trades, callings and employments; Entertainment tax by local bodies

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