22 states scrap check posts for smooth GST rollout

Q8.: what are Taxes Covered, Not Covered and replaced by Government of India

The central government is in charge of collecting direct taxes. Indirect taxes were previously collected by the federal and state governments, as well as local governments. For example, state governments imposed entry taxes and VAT in addition to the Central government. Local Bodies imposed additional taxes such as Property Tax, Water Tax, Toll Tax, and so on.

A large number of indirect taxes were absorbed into GST for better enforcement, tax payment, and compliance. However, many of us believe that the introduction of GST in the country has rendered all previous levies obsolete. On the other hand, there are still some taxes that are levied separately.

Taxes Not Covered by GST

• Petrol, ATF, Petroleum crude, Diesel & Natural Gas
• Basic Custom Duty
• Electricity Duty
• Excise Duty on Alcohol
• Property Tax & Stamp Duty

Notes : Even GST’s motto is “1 Nation 1 Tax”. Even though there are few taxes are not covered under GST as above. 

Central Taxes Replaced by GST-

• Excise duty levied under Medicinal & Toiletries Preparation Act
• Additional duties of Excise levied under Textiles & Textile Products
• Central Excise Duty
• Additional duties of Customs( SAD & CVD)
• Central Sales tax
• Service Tax
• Additional duties of excise
• Surcharges and Cesses

At the state level below mentioned taxes have been replaced by GST-

• Entertainment Tax(Other than those levied by local bodies)
• Taxes on advertisements
• Luxury Tax
• State VAT/Sales Tax
• Taxes on lottery, betting & gambling
• Surcharges & Cesses
• Central Sales Tax
• Purchase Tax
• Entry Tax(All Forms)

22 states scrap check posts for smooth GST rollout

• The rollout of the Goods & Services Tax across the country has been smooth with 22 states, including West Bengal and Delhi, abolishing check posts, adding to the efforts to ensure that the changeover to the new tax regime is hassle-free and least disruptive for businesses and consumers.
• Eight states are on the verge of scrapping the check posts, which is expected to ensure smooth flow of goods across the country.
• The removal of check posts will come as a huge relief for trucks which queue up for hours to get their consignments and papers checked, causing delays and adding to costs.
• A session of the assembly of J&K, which is yet to enact the law+ for the implementation of GST, has been convened on Tuesday to consider approving the legislation.
  Sources in the finance ministry said that there has been no inflationary impact of the new tax regime: an assertion which was significantly endorsed by the CPM-led government in Kerala.

• The LDF government issued a statement in Thiruvananthapuram saying prices of more than 100 products have been brought down under GST.
• State finance minister T M Thomas Isaac came out with the list of products to counter widespread complaints that there was no positive impact of GST in the state.
• Keen to ensure that the momentum is maintained, authorities are also keeping a close watch to ensure that any roadblock is removed swiftly.
• Cabinet secretary P K Sinha reviewed the post-GST implementation situation with the secretaries and senior officials of different ministries and departments.
• The cabinet secretary urged every secretary to take up the responsibility of addressing GST-related issues of their respective stakeholders, trade and industry.
• He asked them to coordinate with state government officials to ensure smooth implementation of the tax measure.
• Sinha also asked all departments to ensure that there is no shortage of products and commodities especially consumer items in order to keep the prices under check.
• The cabinet secretary also urged officials to ensure that retailers, dealers and shopkeepers display the post-GST prices of different items being sold by them.
• He said each department and ministry should make sure that benefits of GST are passed on to consumers which would help keep inflation under control.
• Sinha asked all departments to ensure that that various machines used by dealers and retailers for computerised billing are calibrated at the earliest to reflect the GST rates.
• He said this exercise should be completed in a time- bound manner without delay.