What is in news?
The Indo-American Chamber of Commerce (IACC) on 17th july 2017 flagged points for the smooth transition of the Goods and Services Tax (GST) into a full-fledged tax structure.
suggestion from o IACC is:
Is the need to bring alcohol and petroleum products within the ambit of the Central GST
>As the name suggests, the GST will be levied both on goods (manufacturing) and services.
>A single, comprehensive tax that will subsume all the other smaller indirect taxes on consumption like service tax, etc.
>This is how it is done in most developed countries.
Structure of GST:
>It would have a dual structure, a Central component levied and collected by the Centre and a state component administered by states.
>At the Central level, it will subsume Central excise duty, service tax and additional customs duties.
>At the state level, it will include value-added tax(VAT), entertainment tax, luxury tax, lottery taxes and electricity duty.
>The central government will have the exclusive power to levy and collect GST in the course of interstate trade or commerce, or imports. This will be known as Integrated GST (IGST).
>Tobacco and tobacco products will be subject to GST. The centre may also impose excise duty on tobacco.
Exemption under GST:
Alcohol for human consumption has been exempted.
Initially, GST will not apply to:
High speed diesel
Motor spirit (petrol)
Aviation turbine fuel(ATF)
The GST Council will decide when GST will be levied on them.