News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Indirect Tax »
 Investment tips for those opting for new tax regime
 Indirect tax dept issues notices to companies over late input credit claim under GST frame
 E-generated document required for indirect tax notices
 FinMin seeks industry inputs on direct, indirect tax changes
 Govt gives businesses four months to settle indirect tax disputes
 ITR filing becomes easy via new 'e-Filing Lite' portal - 5 things to know Income Tax Return
 No income tax on interest from accident compensation: High Court
 How much tax do you need to pay for your equity investments?
 Income Tax Department proposes new norms for taxing MNCs in India
 Can you claim tax benefit for tax paid on insurance premium? a
 Top 30 Income Tax Judgments in 2018

Tax incidence under GST lower than current indirect taxes
June, 17th 2017

The incidence of tax on majority of goods is lower under the Goods and Services Tax (GST) regime as compared to the current indirect taxes on account of levy of central excise, service tax, value-added tax (VAT), octroi, entry tax, central sales tax and cascading effect, the Finance Ministry said on Thursday.

"In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied on account of central excise duty rates/ embedded central excise duty rates/ service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of central sales tax, octroi, entry tax levied by the Centre and states," the Ministry said here in a statement.

The tax incidence under GST is lower than the present combined indirect tax rates for milk powder, curd, butter milk, unbranded honey, dairy spreads, cheese, cashewnut, raisins, spices, tea, wheat, rice, flour, edible oils, sugar, macaroni, noodles, fruit and vegetable items, pickle, sweetmeat, sauces, instant food mixes, ice, cement, coal, domestic Liquefied Petroleum Gas (LPG) and LPG stove, it said.

Kerosene, insulin, tooth powder, incense sticks, hair oil, toothpaste, soap, diagnostic kits, school bags, kites, note books, children's colouring books, fabrics, footwear, helmet, spectacles, cutlery, aluminium foil, tractor tyres and tubes, weighing machine, sewing machine, closed-circuit television (CCTV), printers, recorder, car for physically handicapped person, stapler, Braille watches, medical furniture, Light Emitting Diode (LED), baby carriages, bamboo furniture, kerosene lantern and sports goods will also have lower incidence of tax under GST, it added.

The GST rates have been approved by the GST Council. The new indirect tax regime in the country is to come into effect from July 1.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting