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Also, there will be no
change on the taxes both at state and central level on
these products, but there is no decision on natural gas
as yet.
Similarly, GST will not apply to alcoholic beverages and
the state excise duties will continue.
However, tobacco will be
subjected to GST, a separate levy over and above could
also be slapped.
While overall in terms of
which goods should be completely exempted from GST, the
states are sticking to the existing VAT exempt category
for the GST model also.
In terms of GST replacing central and state taxes, here
also the list is not exceptional.
As expected, state taxes like VAT, entertainment tax,
luxury tax, taxes on lottery, betting and gambling will
all be replaced by GST.
But, there is no
consensus on the purchase tax, removal of which will hit
food grain producing states hard, leaving the
possibility of centre compensating those states for
revenue loss.
But the key question
is—will the April 1, 2010 deadline for GST be met?
The response is muted and
that's because the Centre has to prepare a series of
legislative changes starting from next week till early
January next year.
Even the GST rates will
be made known only at the time the Parliament considers
the proposed legislative changes.
So, traders, industry and
taxpayers across will have to wait a while more to know
what their tax burden will be like under GST.
Source :
NDTV.com,
India,
dated
10/11/2009
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