Tobacco, liquor not included in GST      

Tobacco and alcohol are two things that have been kept out of the preview of Goods and Service Tax (GST), which will be implemented from April 1, 2010.

The Gujarat Sales Tax Bar Association has expressed their disapproval and demanded that the two should be included in the GST like all other goods and services.

The Empowered Committee, which is the implementing agency of the GST Act on Tuesday has given a draft to the concerned state ministers and requested comments.

In the draft all companies with the turn over of over Rs 1.5 crore have been exempted from Central GST and all companies with a turn over up to Rs 10 lakh have been exempted from the state GST.

"We have demanded that the Rs 10 lakh limit be increased to Rs 20 lakh. Also there was a rumour that the suggested rate of tax is 24 per cent, but that should not be more than 20 per cent," said Mehul Gandhi, the president of the association.

After the implementation of GST next year, excise, service tax, VAT, entertainment tax and luxury tax will be abolished. 

Source : Times of India, dated 12/11/2009