Which Taxes Covered under CGST & SGST

Recently, The Union Cabinet approved
on 17th December,2014 the proposal for introduction of a Bill in the
Parliament for amending the Constitution of India to facilitate the
introduction of Goods and Services Tax (GST) in the country. The
Government intends to introduce GST from 01 April, 2016.The proposed bill will
give powers both to the Parliament and State legislatures to make laws for
levying GST on the supply of goods and services in the same
transaction.

There will be three legislations
in all i.e. Central GST, State GST and an Integrated GST which will subsume the
following taxes as under:-
Central
GST
State
GST
Central Excise Duty
Value added tax
Additional Excise
Duty
Entertainment tax
Service tax
Luxury
tax
Additional Custom
Duties
Lottery tax
Special Additional
Duty of Customs
Central Sales tax
Central Cess and
surcharges
Entry tax
or Octroi
In additional to the above
salient features of the Bill are as under:-
New Article 246A is
proposed which will confer simultaneous power to Union and State legislatures
to legislate on GST
New Article 279A is
proposed for the creation of a Goods & Services Tax Council which will be a
joint forum of the Centre and the States.
Proposed the
establishment of GST Council in which State Governments will have two-third
vote share.
GST rates will be
uniform across the country.
GST
will be a destination-based tax.
Loss of revenue to the State will be compensated by
the Centre arising on account of implementation of the GST for a period up to
five years. The compensation will be on a tapering basis, i.e.
·        
100% for first three
years,
·        
75% in the fourth
year and
·        
50% in the fifth year
All goods and services, except alcoholic liquor for
human consumption, will be brought under the purview of GST.
The Central
Government has proposed that petroleum products not to be taxed under GST till
notified at a future date on the recommendation of GST Council.
Both Centre and
States will simultaneously levy GST across the value chain. Centre would levy
and collect Central Goods and Services Tax (CGST), and States would levy and
collect the State Goods and Services Tax (SGST) on all transactions within
a State.

The Centre would levy
and collect the Integrated Goods and Services Tax (IGST) on all inter-State
supply of goods and services. There will be seamless flow of input tax credit
from one State to another.
RECOMMENDED READ  DELHI VAT - Circular No. 12 OF 2015-16 - (Instruction regarding processing of Refund), dated 10.06.2015.

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