Taxes Which are not covered under GST




1. Custom Duty

The Countervailing Duty (CVD) and Special Additional Duty (SAD) will subsume under GST, but the Basic Customs Duty (BCD) will be charged according to current law only and not GST.

2. Stamp Duty

The buyer has to the pay stamp duty for the registration of the property, and GST will not cover Stamp duty and will be subsumed as per the tax levied by the government.

3. Vehicle Tax

GST does not cover road tax, so the Vehicle Tax will not be charged under GST, and will remain under the Motor Vehicle Act.

4. Excise on Liquor

For the time being, Liquor has been kept outside the GST. Alcohol needs a constitutional amendment to be brought under the ambit GST. Though Industry Experts suggest, the GST will impact the sector negatively in the future.

5. Tax on Sale and Consumption of Electricity

GST will not affect the Electricity Bills as of now, and the existing tax system of VAT and Central Excise will prevail on Electricity Bills. The state will charge the VAT and Centre will levy the Central Excise.

6. Entry Taxes and Toll

GST will not cover the Toll Tax as such taxes like road tax, toll tax, environment tax and others are directly paid by users and will be levied by States directly.

7. Entertainment Tax (Levied by Local Bodies)

The imposition of the extra tax by local bodies is not covered under GST. Hence, in addition to 28 per cent GST, the local body extra tax will lead to Double Tax. This will indirectly lead to a sharp increase in the price of the tickets.

8. Road Tax

GST will not cover the Road Tax as such taxes like toll tax, road tax, environment tax and others are directly paid by users and will be levied by States directly.

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