Which Taxes Are Replaced By GST?

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    GST stands for "Goods and Services Tax." GST is proposed to be a comprehensive indirect tax levy on manufacture, sale, and consumption of goods as well as services at the national level.

    The main logic behind implementing GST was to consolidate all indirect tax levies into a single tax, except customs replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration.

    In GST only value addition will be taxed, and burden of the tax is to be borne by the final consumer.

    Know which of the taxes are subsumed under GST

    The GST is replacing the following taxes:

    1. Taxes currently levied and collected by the Centre

    a. Central Excise duty
    b. Duties of Excise (Medicinal and Toilet
    Preparations)
    c. Additional Duties of Excise (Goods of Special
    Importance)
    d. Additional Duties of Excise (Textiles and Textile
    Products)
    e. Additional Duties of Customs (commonly known as
    CVD)
    f. Special Additional Duty of Customs (SAD)
    g. Service Tax
    h. Central Surcharges and Cesses so far as they
    relate to supply of goods and services.

    What Are The Major Benefits or Advantages Of GST?

    2. State taxes that would be subsumed under the GST are:

    a. State VAT
    b. Central Sales Tax
    c. Luxury Tax
    d. Entry Tax (all forms)
    e. Entertainment and Amusement Tax (except when
    levied by the local bodies)
    f. Taxes on advertisements
    g. Purchase Tax
    h. Taxes on lotteries, betting and gambling
    i. State Surcharges and Cesses so far as they relate to
    supply of goods and services.

    GST

    GST has eliminated all the above-mentioned taxes. After July 1 excise, octroi, sales tax, CENVAT, Service tax, turnover tax, etc. are not applicable. Now all these taxes fall under GST.

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