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GST Q&A

What principles were adopted for subsuming the different taxes under GST?

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Q 4. What principles were adopted for subsuming
the above taxes under GST?

Ans. The various Central, State and Local levies were examined to identify their possibility of being subsumed
under GST. While identifying, the following principles were kept in mind:

(i) Taxes or levies to be subsumed should be primarily in the nature of indirect taxes, either on the supply of goods
or on the supply of services.
(ii) Taxes or levies to be subsumed should be part of the transaction chain which commences with import/ manufacture/ production of goods or provision of services at one end and the consumption of goods and services at the other.
(iii) The subsumation should result in free flow of tax credit in intra and inter-State levels. The taxes, levies and fees that are not specifically related to supply of goods & services should not be subsumed under GST.
(v) Revenue fairness for both the Union and the States individually would need to be attempted.

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ABOUT THE AUTHOR

Sanjay Kumar is the Founder of the GSTHelp.info Portal. He is Web Developer since 2007 and likes blogging and be creative on the Web Portal. The Blogging is just passion not profession of him. Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions.

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