Goods and Services Tax (GST), is an In-direct tax that has replaced various taxes levy at Central and State level and has unified them all under one national market across India. Khurana & Khurana provides consulting & assistance in implementation of GST. We also provide review of the GST implementation done by the company.
Central (Duties and Taxes) merged under GST:
- Central Excise Duty (including Additional Excise Duty) – Central Excise is a duty imposed on manufacturing of goods in India and the collection for this duty is done by Central Board of Excise and Customs.
- Service Tax – Service Tax is a tax which is levied by the government on the services provided and it actually bear by the customers. It is an indirect tax, wherein the service provider collects the tax from 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 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 4% on good imported and this is in instead of VAT/ Sales Tax.
- Central Surcharges and Cess – Surcharge is a charge on tax and as a name suggest, 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 central government and is levied for specific purpose.
State (Duties and Taxes) merged under GST:
- Value Added Tax (VAT) – VAT is an indirect tax on the goods and services that are provided at state level or domestic. It is imposed at each stage in the chain of distribution and production from the raw materials till the valuation of the product and it is borne by the end users (customers) in Distribution channel.
- Central Sales Tax – CST, is levy on sales, which is affected by inter-state trade. CST is an indirect tax on consumers. As it is centrally levy, so it is administered by the concerned state where the sales originated.
- 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 wide range of goods.
- Luxury Tax – A Luxury Tax is levy 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.