GST System

There are three recognized systems for GST worldwide -

(a) Invoice System
(b) Payment System
(c) Hybrid System .....

How GST Will Work

The idea of Goods and Services Tax (GST) also known as Value Added Tax (VAT) is a tax on each financial contribute in the distribution chain. The taxable .....

GST Models

There exist various models of GST. Each model has their own advantages and disadvantages .....

Exempted Goods and Services

Some particular goods and services may be marked as exempted goods and services and the input credit should not be claimed on the .....

Tax Invoice

Tax invoice is the most vital & basic document in the GST. A dealer registered under GST can issue a tax invoice and .....

Central and State Taxes to be subsumed under GST

The various Central, State and Local levies were examined to identify their possibility of being subsumed under GST. While identifying, the following principles were kept in mind:

♦ Taxes or levies to be subsumed should be part of the transaction chain which commences with import/manufacture/ production of goods or provision of services at one end and the consumption of goods and services at the other.

♦ The subsumation should result in free flow of tax credit in intra and inter-State levels.

♦ The taxes, levies and fees that are not specifically related to supply of goods & services should not be subsumed under GST.

♦ Revenue fairness for both the Union and the States individually would need to be attempted.

On application of the above principles, it is recommended that the following Central Taxes should be, to begin with, subsumed under the Goods and Services Tax:

♦ Central Excise Duty

♦ Additional Excise Duties

♦ The Excise Duty levied under the Medicinal and Toiletries Preparation Act

♦ Service Tax

♦ Additional Customs Duty, commonly known as Countervailing Duty (CVD)

♦ Special Additional Duty of Customs - 4% (SAD)

♦ Surcharges, and

♦ Cesses.