Brief introduction of indirect taxation before GST Law
Hello Friends, Today i will discuss our indirect taxation system in brief before GST Act. So, let me start..... Currently, there are various indirect taxes on very same transaction, either by central govt., state govt. or local authorities. Some of them are as follow:- 1) VAT/CST, 2) Service Tax, 3) Excise Duty, 4) Customs Duty, 5) Entry Tax, 6) Luxury Tax, etc. However, Taxable Events in each cases is different like, service tax is levied on service rendering, excise duty is levied on manufacturing of goods, VAT/CST is levied on Sales of goods, etc. The major source of income of government are from excise duty, customs duty levied on import of goods, service tax, VAT/CST. According to Schedule 7th of Indian Constitution , central & state government has power to levy tax. The entries in List-1, 2, & 3 of Schedule 7th of Indian Constitution provide power to levy taxes. The Power of levy this taxes is summarized in