“Based on the one nation one tax ideology, GST has helped in reducing the cascading effect of tax considerably. That apart, taxpayers are also complaining about the imposing an arbitrary monetary limit on availing input tax credit through Rule 36(4) and mandating that a certain percentage of GST has to be paid in cash.
The duty in Goa is much lower than in elsewhere in India meaning that a bottle of beer is about Rs 30 cheaper in Goa than elsewhere in India. So I think there is some sort of restriction in the amount of beer one can carry over the state border.
However, reconnection charges are not collected for separate service and it forms part of the principal supply. Hence, it is a composite supply (principal supply being electricity) and hence GST on such supply is NIL.
On 2nd June 2014, VAT was implemented in all states and union territories of India, except Andaman and Nicobar Islands and Lakshadweep Islands. For interstate supplies, CST or Central Sales Tax was imposed. CST applies on the sale of goods levied by the Central Government.
India now has the highest taxes on fuel in the world!
- Excise duty: On petrol, the duty levied is Rs 32.98 a litre, while on diesel it is Rs 31.83 per litre.
- VAT: It varies from state to state, with Madhya Pradesh, Kerala, Rajasthan, Karnataka levying over 30 per cent VAT — the highest among states.
Petrol prices in USD, EURO and INR
| Rank | Country | Gasoline/Petrol Prices per liter |
|---|
| INR (₹) |
|---|
| 1 | Venezuela | 1.48 |
| 2 | Iran | 4.82 |
| 3 | Angola | 18.48 |
The cost of petrol in Delhi stands at
Rs 101.84 per litre.
Petrol, diesel prices in Indian cities:
| CITY | PETROL(PER LITRE) | DIESEL(PER LITRE) |
|---|
| DELHI | Rs 101.84 | Rs 89.87 |
| MUMBAI | Rs 107.83 | Rs 97.45 |
| KOLKATA | Rs 102.8 | Rs 93.02 |
| CHENNAI | Rs 99.47 | Rs 94.39 |
To subsume a majority of the indirect taxes in India
There was no unified and centralised tax on both goods and services. Hence, GST was introduced. Under GST, all the major indirect taxes were subsumed into one. It has greatly reduced the compliance burden on taxpayers and eased tax administration for the government.While international crude oil prices determine the cost of fuels in India, it is only one factor contributing to the rise in petrol and diesel. The main reason for this hike is central and state government taxes.
At present, electricity is not subject to GST and power companies pay multiple taxes on capital goods and other inputs like excise duty, customs duty, countervailing duty, special additional duty, education cess, water cess, local area development tax, entry tax and stamp duty, besides state electricity duty.
Taxes behind high fuel prices in IndiaInternational prices are thus the determinants of prices of petroleum products in India, per the ministry. On June 6, former Union petroleum minister Dharmendra Pradhan said that high fuel prices in India were due to rising global crude oil prices.
A litre of petrol costs Rs 95.85 in the national capital, highest ever. While petrol has become expensive by up to 31 paise, diesel is costlier by up to 28 paise on Friday, according to Indian Oil Corporation. In Mumbai, a litre of diesel is being sold at ₹94.15 for a litre.
Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption.
Exempted Goods in GST exemption list
- Food. Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd, etc.
- Raw materials.
- Tools/Instruments.
- Miscellaneous.
Items that are exempted from GST are live fish, fresh fish, bird's eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.
Example: Salt, grains, jaggery etc. Supplies are taxable but do not attract GST and for which ITC cannot be claimed. These supplies do not come under the purview of GST law. Example: Alcohol for human consumption, Petrol etc.
Some items are exempt from sales and use tax, including:
- Sales of certain food products for human consumption (many groceries)
- Sales to the U.S. Government.
- Sales of prescription medicine and certain medical devices.
- Sales of items paid for with food stamps.
Alcohol, petroleum, petroleum products, import duty, mandi tax, stamp duty, registry, road tax, vehicle tax, some entertainment (levied by local bodies) are some of the taxes that are still out of the framework of the GST.
28/2017-Central Tax(Rate) dated 22nd September, 2017 brought the amendment to the notification 2/2017 Central Tax(Rate) dated 28th June, 2017 states that rice put up in unit container bearing a brand name, where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, is
Advantages of GST
- GST eliminates the cascading effect of tax.
- Higher threshold for registration.
- Composition scheme for small businesses.
- Simple and easy online procedure.
- The number of compliances is lesser.
- Defined treatment for E-commerce operators.
- Improved efficiency of logistics.
- Unorganized sector is regulated under GST.
Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating. You also pay
standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.
Fuel Duty rates.
| Type of fuel | Rate |
|---|
| 'Fuel oil' burned in a furnace or used for heating | 10.70 pence per litre |
Putting petrol in a diesel car can cause serious damage to the fuel injection system and engine. When petrol is added to diesel it reduces its lubrication properties, which can damage the fuel pump through metal-to-metal contact and create metal particles causing significant damage to the rest of the fuel system.
The best way to work out how much GST is included in a price is to divide the total price by 11. To find out the price without GST divide the total price by 11 and then multiply that figure by 10.
GST Rate revision in 37th GST council meeting
| Item | Old Rate | New Rate |
|---|
| Other Job work | 18% | 12% |
| Hotels (Room Tariff of Rs.7501 or above) | 28% | 18% |
| Hotels (Room Tariff from Rs 1,001 to Rs 7,500) | 18% | 12% |
| Woven/ Non-woven Polyethylene Packaging bags | 18% | 12% |
