The Taxes Being Subsumed at State and Central Levels after GST

GST is a single tax regime on the supply of varied goods and services, right from the maker to the consumer. Credits of input taxes compensated at each and every stage will be available in the accompanying stage of value addition, making GST essentially a tax only on the value addition at each and every stage.

The end consumer will this way bear only the GST levied by the end dealer in the supply chain, with set-off advantages at all the previous stages.

Easy and transparent compliance

A very stout and comprehensive information technology system would be the cornerstone of the GST regime in the country. Therefore, all tax payer services like registrations, timely GST Return Filing, payments, etc. shall be available to the country’s tax payer online, making compliance easy and transparent.

At the Central Government level, the given below taxes are being subsumed:

 

1. Central Excise Duty,
2. Additional Excise Duty,
3. Service Tax,
4. Additional Customs Duty commonly known as Countervailing Duty, and
5. Special Additional Duty of Customs.

On the other hand, at the State level, the given below taxes are being subsumed:

1. Subsuming of State Value Added Tax/Sales Tax,
2. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
3. Octroi and Entry tax,
4. Purchase Tax,
5. Luxury tax, and
6. Taxes on lottery, betting and gambling.

The GST registration number will fully be PAN based and will serve the core purpose for both Centre and State.

1. Unified application to both tax authorities.
2. Each dealer to be given unique ID GSTIN.
3. Deemed approval within three days.

With the timely help of GST Suvidha Kendra around, one can very easily cope with issues associated with GST.

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