GST to subsume
central excise, VAT among other levies
Various central levies such as excise, value added tax
and service tax are proposed to be subsumed in the the Goods and Services Tax (GST),
making it a lot easier for the business and industry.
A discussion paper by the Empowered Committee of State Finance Minister released
today said taxes levied by the central government like excise, additional excise
duty and various surcharges and cesses would be part of the GST.
"It will re-distribute the burden of taxation equitably between manufacturing
and services bringing about a qualitative change in the tax system," Finance
Minister Pranab Mukherjee said at the release function here.
West Bengal Finance Minister Asim Dasgupta who heads the Empowered Committee
released the paper.
The GST would also subsume other levies like additional customs duty (also
called countervailing duty), excise duty on medicine and toiletries, said the
Paper.
Besides the central levies, several taxes currently being levied at different
levels will become part of the GST. These include VAT, sales tax, entertainment
tax (except the one levied by the local bodies), luxury tax, taxes on lotteries,
betting and gambling and state cesses and surcharges and the entry tax.
Alcohol and petroleum products, however, will not be covered by the GST, though
tobacco would attract GST, the Paper added.
