Let me help you with what are the taxes subsumed in GST. The GST implemented in India in July 2017 aimed to streamline the indirect tax structure by subsuming various central and state taxes into a single tax system. This unification of taxes simplifies compliance and enhances transparency in the taxation process.
Here’s a detailed look at the taxes subsumed under GST:
Central Excise Duty: Previously levied on the manufacture of goods, it is now included in the GST framework, except for a few products like petroleum and tobacco.
Service Tax: This tax on services, previously collected by the central government, is also subsumed under GST.
Value Added Tax (VAT): VAT imposed by state governments on the sale of goods is subsumed under GST, unifying state taxation on goods.
Central Sales Tax (CST): Levied on inter-state sales, CST has been replaced by GST, facilitating seamless interstate trade.
State Excise Duty: Applicable on alcoholic beverages, it continues to exist separately but is not a part of GST.
Entry Tax: This tax on the entry of goods into a state has been eliminated, streamlining the movement of goods across state borders.
Luxury Tax: Previously levied on luxury items and services, this tax is now part of the GST regime.
Purchase Tax: Previously imposed by some states, this is also subsumed under GST.
By consolidating multiple taxes, GST reduces the complexity of compliance. Businesses can claim input tax credits across the entire supply chain, enhancing cash flow. GST promotes uniform tax rates across states, reducing tax arbitrage. I hope you get an idea of what are the taxes subsumed under GST.
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What are the Taxes Subsumed in GST?
Vibhor
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3 months
2024-09-27T11:54:45+00:00 2024-09-30T19:43:20+00:00Comment
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