VIJAYAWADA: The very objective of Goods and Service Tax is to have a uniform taxation regime that will not put any State in the country in a disadvantageous position and benefit the common man, Commercial Tax Commissioner J Syamala Rao has said.
Participating in an awareness programme on ‘GST - Implementation’ organised by Andhra Chamber of Commerce on Thursday, Syamala Rao said the new tax regimen is the latest and perhaps the last reforms brought in indirect taxes.
He said except alcohol, every commodity has been brought under the GST net.
The one tax, replacing multiple taxes and duties imposed at the State and Central level, will, in fact, replace around 200 different Acts exist in the indirect taxation system.
Further, it provides a common market and achieves balance and at the same time checks tax evasions, he said. According to him, there is no separate registrations for goods and services under GST and the single registration is based on PAN number. This will bring transparency and ensure accountability. In fact, it is a dual taxation method with 50% of tax going to the Centre and remaining 50 to the States.
There are three types of GST — CGST, SGST, IGST. The tax collected by the Central government is CGST and the tax collected by State government on goods and services within the State is SGST and the tax collected by Centre on goods and services between two different States is IGST.
He said though GST slabs have been fixed as 5%, 12 %, and 18 %, in certain cases, there will be cess to the tune of 190 to 200 per cent on coal, cigarettes, pan masala, soft drinks and luxury cars. At the same time, there are some exemptions from GST like food grains and ‘prasad’ of temples.
Not easy to amend GST rates It is not easy to amend the GST fixed as it would require three by fourth majority in the GST council which has representatives of Central and State governments.