Aug
04
Entertainment Tax to be subsumed with other taxes at state level, says Finance Ministry
Posted in: AnimationThe Government today said that Entertainment Tax (other than the tax levied by the local bodies) and Central Sales Tax (levied by the Centre and collected by the States)are being subsumed at the state level.
In a statement containing frequently asked questions about the Goods and Service Tax (GST), the Finance Ministry said that at the sate level, subsuming of State Value Added Tax/Sales Tax, Octroi and Entry tax, Purchase Tax, Luxury tax, and taxes on lottery, betting and gambling are included.
It said subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling are the major features of the Constitution (122nd Amendment) Bill 2014.At the outset, the FAQ says GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far, the Ministry said.
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