GST Regime – Some Salient Features
Some of the salient features of the GST regime are:
Dual GST:In consideration of the federal structure of India, Dual GST has been chosen as the apt model wherein tax would be jointly levied by both Centre and the states on supply of goods and services.
Components of GST:
- CGST (Central GST)
- SGST (State GST)
- IGST (Integrated GST)
Levy of GST:On intrastate transactions CGST + SGST will be applicable and on interstate transactions & Imports, IGST will be applicable.
Taxes Subsumed under GST:Central Excise, Service Tax, CST, VAT, Entertainment Tax, Luxury Tax, Octroi and Entry Tax, Purchase Tax.
Taxes not subsumed under GST:Basic Customs Duty, Stamp Duty, Property Tax, Toll Tax.
Items exempt from GST:Petrol / Diesel / Aviation fuel / Natural Gas, Electricity.