TaxTMI 
TaxTMI 
25 Aug 2015 
- As per recommendations by Joint Working Group appointed by Empowered Committee in 2007, the GST in India may have four components in its tax structure as – (a) Central tax on goods upto retail level, (b) Central Service Tax, (c) State Vat tax on goods, and (d) State VAT on services. As far as tax rate structure is concerned each of the above four components may have four–rate categories.
- The Central GST will be administered by the Central Government and the State GST will be administered by the State Governments. The different taxes will be subsumed as under :-
Subsumed in Central Tax | Subsumed in State Tax |
Central Excise Duties (CENVAT) | Value Added Tax |
Additional duties of excise | Purchase Tax |
Additional customs duties in the nature of excise duties (countervailing duties) | State Excise Duty (except Liquor) |
Cessess levied by the Union | Entertainment Tax (unless it is levied by the local bodies) |
Service Tax | Luxury Tax |
Central Sales Tax | Octroi and Entry Taxes |
Surcharges levied by the Union | Taxes on Lottery, Betting and Gambling |
- Proposed GST will have two components Central GST and State GST.
- Taxable event will shift to sale rather than manufacture.
- Exports will be zero rated and will be freed from all duties and taxes.
- JSW also prepared the list of exempted goods.
- Certain products or components will be kept out of the GST structure so as taxes by local bodies.
- Cross utilization between State GST and Central GST is not expected to be allowed.
This is just for your reference. It does not constitute our professional advice or recommendation.