Proposed System of GST & Its features

Proposed GST Tax Structure:

There will be Three Type of GST: viz, Central Goods & Service Tax (CGST), State Goods & Service Tax (SGST) & Integrated Goods & Service Tax (IGST)

Intra-state Taxable Supply: Excise & Service Tax will be known as CGST & Local VAT & other Taxes will be known as SGST

Inter-State Taxable Supply: Instead of IGST will be charged & the rate will be approx. sum total of CGST & SGS

Import from India: In Customs Duty in place of CVD & SAD IGST will be charged.

Proposed Features:

• For Exempted goods & services -There will be a common list of CGST & SGST
• CGST will be collected by Centre & SGST will be collected by State
• IGST will be charged in case of Inter state supply of goods & services & Import
• Export of Goods & Services will be zero rated
• Following taxes will be Subsumed with implementation of GST
  • Charged by Centre: Excise Duty, Customs Duty & Service Tax
  • Charged by State: VAT/ CST, Entertainment Tax, Luxury Tax, Entry Tax, Taxes on Lottery, Betting & Gambling
• All goods & services will be covered under GST except:
  • Alcohol- State excise & Vat will be charged
  • Electricity – Electricity Duty will be charged
  • Real Estate- Stamp Duty & Property Taxes will be charged
  • Petroleum Products
• Central Excise will be charged along with GST in case of Tobacco products
• Four type of GST Rate will be there:
  • Merit rate for essential goods & Services
  • Standard Rate for Goods & Services
  • Special rate for precious Metals
  • NIL Rate
• Services will become a bit costlier since instead of Service Tax CGST & SGST both will be charged but input credit will be available to the manufacturers & Dealers.