GST structure is expected to have two components: One levied by the Centre - Central GST (CGST), and the other levied by the State - State GST (SGST). Both components would be applicable on all taxable transactions of goods and services. The Centre and the States would have simultaneous jurisdiction for all tax-payers in the value chain. The CGST and the SGST would be levied simultaneously on every transaction of goods and services, except for the services and goods which are beyond the purview of GST.
Custom Duty, Excise duty on Tobacco products, Specific cess, Taxes on liquor, Electricity cess, Property Tax, Toll Tax, and Stamp Duty are exempted as of now from the purview of GST but subjected to changes introduced by the government.
A four-tier GST tax structure of 5%, 12%, 18% and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess is introduced. Essential items like food and basic necessities will be taxed at zero percent. (Tax rates subject to latest Annexure by the government). The returns will be filed in the prescribed format available on the government online portal. In the table below, we have provided details of all the returns which are required to be filed under the GST Law.
The GST would replace the following taxes :
CGST replaces Central Excise Duty+Additional Excise Duty, Service Tax, Central Cesses & Surcharges on Goods & services, Additional & Special Additional Duty of Customs.
SGST replaces VAT, CST, CAD, SAD, Taxes on Lottery-Billing-Gambling, Entertainment Tax(accept by local bodies), Purchase tax and Luxury Tax.