Goods
and services tax
Updates / Press releases :
Dated
: 18th July, 2017
Press Release :
Ministry of Finance
GST : to migrate from a complicated and multi
tax system to a simpler tax system
The tax rates on goods and services have been
fixed taking into consideration, inter alia, the total indirect tax incidence
in pre- GST regime, including cascading of taxes. The GST rates so notified are
lower than the pre-GST tax incidence on most of the items of mass consumption,
such as cereals, pulses, milk, tea, vegetable edible oils, sugar, toothpaste,
hair oil, soap, footwear, Childrens' picture, drawing or coloring books, etc.
In addition, the objective of GST was to migrate from a complicated and multi
tax system to a simpler tax system. The GST thus, is a much simpler tax regime
as compared to tax regime it has replaced. In fact, GST has replaced several
taxes which were being levied and collected by the Centre, including Central
Excise Duty; Duties of Excise (Medicinal and Toilet Preparations); Additional
Duties of Excise (Goods of Special Importance); Additional Duties of Excise
(Textiles and Textile Products); Additional Duties of Customs (commonly known
as CVD); Special Additional Duty of Customs (SAD); and Service Tax. In addition,
a number of State taxes have also been subsumed in GST, including State VAT;
Central Sales Tax; Purchase Tax; Luxury Tax; Entry Tax (All forms);
Entertainment Tax (except those levied by the local bodies); Taxes on
advertisements; Taxes on lotteries, betting and gambling. Besides, a number of
cesses have also been abolished vide the Taxation Laws Amendment Act, 2017. GST
has only five rational rates (0%, 5%, 12%, 18%, and 28%) as against multiple
excise duty rates, rate of cesses and surcharges and multiple rates of VAT
(varying across the states in many cases). Therefore, overall the GST is much
simpler to earlier tax regime it has replaced.
This was stated by Shri Santosh Kumar Gangwar,
Minister of State for Finance in written reply to a question in Rajya Sabha
today.
press release can be
access at : http://pib.nic.in/newsite/erelease.aspx issued by Ministry of
finance dated 18th July, 2017.
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