8 Indirect Taxes That Are Not Covered Under GST!
The four-day-old GST Nation might be struggling with the new taxes and rules, but here are a few things that you need to know.
The Prime Minister may have announced the ‘One Nation One Tax’ propaganda, but there are still a number of indirect taxes which the GST doesn’t cover. There are several taxes which are going to be levied by the local bodies, and the GST is not going to cover them. Here are the 8 such taxes which are not covered under GST
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.
The Countrywide Protests Due to GST
There have been several protests and shutdowns happening all around the country due to GST. Even it opened to mixed reactions from consumers as well.
1. Traders in Kolkata Shut Down Shops in Protest Against GST – Close to 1.5 lakh traders in Kolkata in protest against the implementation of GST, closed down their shops, demanding a partial rollback of GST.
2. About 1100 Cinemas Shut down in Tamil Nadu in Protest – About 1100 cinema halls and multiplexes across the state have stopped the screening of movies in protest against the additional 30% tax over the newly implemented GST of 28%, taking the total tax to a massive 58%.
3. Violence in Jammu and Kashmir Assembly Due to GST – The proceedings of the Jammu and Kashmir Legislative Assembly turned into a complete chaos a few hours back, as the MLAs in the assembly clashed with each other over GST.
4. Textile Traders in Surat Protest against GST – The textile traders in Surat protested in support of an indefinite bandh called by the GST Sangharsh Samiti against the Goods and Services Tax on textiles.
5. Merchants in Indore Shut Down Shops to protest against GST – The city shops deserted after around a lakh merchants and shopkeepers shut their shops to protest against the GST. Over 200 Merchant Associations from the city joined hands to protest against GST.