Definition of GST, Principal of Taxes Subsumation, Central Tax and State Tax to be Subsumed in GST. To know more About GST in India, visit https://www.legalraasta.com/

1. YOUR ONLINE COMPANION FOR COMPANY, TAX AND LEGAL MATTERS.
WWW.LEGALRAASTA.COM
GST IN INDIA

2. GOODSERVICETAX
Definition Of GST
GST is commonly described as indirect, comprehensive, broad based consumption tax. The dual GST which
would be implemented in India will subsume many consumption taxes.
The objective is to subsume all those taxes that are currently levied on the sale of goods or provision of
services by either central or state government. Subsumation of large number of taxes and other levies will
allow free flow of larger pool of tax credits at both central and state level.

3. PRINCIPALTAX
• 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
• 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.
• 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
• The subsumation should result in free flow of tax
credit in intra and inter-State levels.
PRINCIPLES OF
TAXES
SUBSUMATION

4. • On application of the above principles and various papers which have
been released in this regard, it is deduced that the following Central
Taxes should be, to begin with, subsumed under the Goods and
Services Tax:
• Central Excise Duty (CENVAT)
• Service Tax
• Special Additional Duty of Customs - 4% (SAD)
• Central Sales Tax to be phased out.
CENTRAL
TAXES TO BE
SUBSUMED
IN GST
• Following State taxes and levies would be, to begin with, subsumed
under GST:
• VAT / Sales tax.
• Luxury tax.
• Purchase Tax.
• Octroi and Entry Tax.
STATE TAXES
TO BE
SUBSUMED
IN GST
CENTRALTAXANDSTATETAX

5. TREATMENTOFSPECIFICGOODS
TREATMENT OF SPECIFIC GOODS- The Central Government tabled the 122nd
Constitution Amendment Bill, 2014 (‘Bill’) on the introduction of Goods and Services
Tax (‘GST’) before the lower house of Parliament on December 19, 2014. On analysis of
the Bill, the Bill contains the following treatment for the following specific goods.
TAX ON SUPPLY OF
THE ALCOHOLIC
LIQUOR FOR
HUMAN
CONSUMPTION
TAX ON PETROLEUM
CRUDE/ HIGH SPEED
DIESEL/ MOTOR
SPIRIT/ NATURAL
GAS/ AVIATION
TURBINE FUEL
TAX ON
NEWSPAPERS AND
ADVERTISEMENT
THEREIN

6. TAXES
TAX ON NEWSPAPERS AND ADVERTISEMENT THEREIN
GST would be capable of being levied on the sale of newspapers and advertisements therein. This would give the
governments the access to substantial incremental revenues since this industry has historically been tax free in its
entirety.
TAX ON SUPPLY OF THE ALCOHOLIC LIQUOR FOR HUMAN
CONSUMPTION
As per the proposed amendment to Constitution by the Constitution (122nd Amendment) Bill, 2014, supply of the
alcoholic liquor for human consumption has been excluded from the definition of goods and service tax
"Goods and services tax" means any tax on supply of goods or services or both except taxes on the supply of the
alcoholic liquor for human consumption

7. TAXESONPETROL,GAS
TAX ON PETROLEUM CRUDE/ HIGH SPEED DIESEL/ MOTOR SPIRIT/
NATURAL GAS/ AVIATION TURBINE FUEL
• The States would continue as per the current laws to impose Value Added Tax (VAT) on
Petroleum Crude/ High Speed Diesel/ Motor Spirit/ Natural Gas/ Aviation Turbine Fuel on
intra-state sales while inter-state sales would continue to attract Central Sales Tax (CST).
It is currently unclear from the schematics of the Bill whether States would fully discontinue
collecting VAT/ CST on these products from this notified date, or whether the transition
would be gradual. The Bill however also states that these products can be subjected to an
excise duty imposed by the Centre; this levy would be imposed now and even after GST
comes into force. Such duty can be in addition to the applicable VAT or GST imposed.

8. ABOUTLEGALRAASTAANDTEAM
About us
We are committed to helping you grow your business and add value through our expertise. We aim to deliver a hassle-free experience so
that you can focus on your core business.
Our mission is to offer affordable, quick and automated professional services to clients. Through technology, we bring numerous
government/ legal forms at one place and have simplified them to be fully understood by common man. Legalraasta.com is a one
destination for your legal matters relating to:
1. Forming any type of business entity (e.g., Pvt. Ltd Co, LLP etc)
2. Filing individual and company return
3. Helping on company compliances such as ROC filings & minutes
4. Protecting work through trademark & copyright
Our team
LegalRaasta.com has been founded by a team of Chartered Accountants and professional advisors. We currently have a
network of 100+ professionals including experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants,
Chartered Engineers and Bankers.
Pulkit Jain, founder of Legalraasta, has over 5+years experience in CA and Legal domain. He has worked with the top CA firms
in India and has served large corporate and MNCs

9. WHYCHOOSEUS
Cost effective
Businesses are always under intense time and cost
pressures. With our great packages 40% savings are
ensured compared to typical CA/ Lawyer
Expertise
By teaming up with us , you will have an access to
network of 100+ experts. You can gain the peace of
mind in knowing that your accounting tasks are done
properly by qualified, experienced and knowledgeable
professionals in the field.
Easy Online Process
You don’t have to deal with the typical
headaches involved with face to face meeting
and visiting government offices. Our process is
100% online. Fill out simple forms – and you are
done!!
Trusted
We are a trustworthy partner which has been
serving startups & companies for past several years.
Our growth numbers stand as a testimony:
• 200+ clients
• 100+ services
• 30+ testimonials
Partner/ Affiliations
We are an e-filing intermediary and have been facilitating filing of
hundreds of e-returns. We are also registered with e-mudhra for
issue of Pan cards. There are multiple other associations with CA
& legal firms.
Our site has been secured by SSL to protect your personal &
payment details

10. CONTACTUS
Corporate office
B-186, Lok Vihar, Pitampura, Delhi 110034 India
Our team always endevour to serve you best. Feel free to reach out to us at:
www.legalraasta.com
Mail: contact@legalraasta.com, M: +919999379929