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GOODS AND SERVICE TAX
Goods and Service Tax (GST)
Change the introduction as “Goods and Services Tax (GST), is an Indirect tax that has replaced various indirect taxes levied at both Central and State level, and has unified them all under one national market across India. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It is indirectly levied on the supply of goods and services. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. Inter-state sales are chargeable to Integrated GST. The most important feature of GST is that it removes the cascading effect on the sale of goods and services. However, GST in a federal structure like India is very complex and faces numerous challenges in its proper implementation. We, at Khurana & Khurana, provide consulting & assistance in the proper implementation of GST. We also provide a review of the GST implementation done by a company.
CENTRAL (DUTIES AND TAXES) MERGED UNDER GST
Central Excise Duty (including Additional Excise Duty)
Central Excise is a duty imposed on the manufacturing of goods in India and the collection of this duty is done by the Central Board of Excise and Customs.
Service Tax
Service Tax is a tax that is levied by the government on the services provided and it is actually borne by the customers. It is an indirect tax, wherein the service provider collects the tax from the service receiver and pays to the Government.
Additional Customs Duty
It is a duty equivalent to Central Excise Duty which is imposed on manufacturing. It is calculated on the value base of goods including landing charges and basic customs duty (excluding anti-dumping duty, safeguarding duty, etc).
Special Additional Duty of Customs
It is payable at 4% on the goods imported and this is instead of VAT/ Sales Tax.
Central Surcharges and Cess
Surcharge is a charge on tax and as the name suggests, it is an additional charge and it is basically on personal income tax (on high-income slabs) and on corporate income tax. Cess is imposed by the central government and is levied for a specific purpose.
STATE (DUTIES AND TAXES) MERGED UNDER GST
Value Added Tax (VAT)
VAT is a state-level indirect tax on goods and services, applied at each production and distribution stage, ultimately borne by end-users.
Central Sales Tax
CST is an indirect tax on inter-state sales, levied centrally but administered by the state of origin.
Octroi & Entry Tax
Octroi is a tax which is charged by local authority say, Municipality and Entry Tax is charged by State.
Purchase Tax
Purchase tax is a tax that is imposed on the purchase of goods by the state government, and it is applied to a wide range of goods.
Luxury Tax
A Luxury Tax is levied on articles that are either expensive or optional
Taxes on lottery, betting and gambling
Tax which is imposed on Lottery winnings, Gambling and Betting calculated as Tax Deduction at Source and it is deducted from Income.
Entertainment Tax
Entertainment Tax is a tax levied by the government on things related to entertainment like movie tickets, commercial shows, etc.
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