Major step:The GST will apply to all goods other than alcohol and petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel.— file photoCentre targets implementation of Goods and Services Tax from April 1, 2017The Goods and Services Tax Act will amalgamate over a dozen of Central and State taxes into a single tax (GST) in States like Karnataka. The GST would subsume State taxes such as State Value Added Tax (VAT), Central sales tax, luxury tax, entry tax (all forms), entertainment and amusement tax (except when levied by the local bodies), taxes on advertisements, purchase tax, taxes on lotteries, betting, and gambling, State surcharges and cess so far, as they relate to supply of goods and services, according to a booklet ‘GST Overview’ prepared by the State Finance Department. The GST to be levied by the Centre on intra-State supply of goods and/or services would be called Central GST (CGST) and that to be levied by States would be called State GST (SGST). Parliament will have power to make laws with respect to GST imposed by the Centre and the State legislatures will make laws with respect to GST imposed by States. The list of exempted goods and services will be common for the Centre and States, and will be finalised by the GST Council.

Source: The Hindu October 17, 2016 00:00 UTC