Components of GST- Manoj Gurukul

Components of GST

• GST would be levied on a common base by both the central and the state government simultaneously. The dual GST can be categorized into the following:
• Central GST (CGST)- GST to be levied by the central government.
• State GST (SGST)- GST to be levied by states and Union Territories with legislature.
• Union Territory GST (UTGST)- GST levied by Union Territories without legislature.
• Integrated GST (IGST)- GST levied by central government on inter-state supply of goods and services to ensure that the credit chain is not disrupted. Apart from the applicable custom duties, import of goods and services would be treated as inter-state supplies and would therefore be subject to IGST.
• GSTC (GST Council) would be responsible for deciding the rates of CGST, IGST and SGST/UTGST with mutual agreement of the states and the center. The following taxes currently levied by the center would be subsumed with the introduction of GST-

1. Central Excise Duty
2. Duties of Excise (Medicinal and Toilet Preparations)
3. Special Additional Duty of Customs (SAD)
4. Service Tax
5. Cesses and surcharges applicable so far related to goods and services.
6. Additional Duties of Excise (Textiles and Textile Products)
7. Additional Duties of Excise (Goods of Special Importance)
8. Additional Duties of Customs (commonly known as CVD)

• The following taxes currently levied by the state would be subsumed with the introduction of GST-

1. Central Sales Tax
2. State VAT
3. Purchase Tax
4. Entry Tax (All forms)
5. Luxury Tax
6. Taxes on advertisements
7. Entertainment Tax (except those levied by the local bodies)
8. State cesses and surcharges applicable so far related to supply of goods or services.
9. Taxes on lotteries, betting and gambling

• Alcohol for human consumption would be the only product on which GST is not applicable.
• Crude, Diesel, ATF, Petrol and Natural Gas are the five specific petroleum products on which GST would be applicable from a date decided by GSTC.
• The center would levy central excise duty on tobacco and tobacco products and they would also be subject to GST.