GST in India

Goods and Services Tax is a tax on goods and services, which will be levied at each point of sale or provision of service, in which at the time of sale of goods or providing the services the seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring the service.
In particular, it would replace the following indirect taxes:

At Central level

· Central Excise Duty
· Service Tax
· Additional Excise Duties
· CVD (levied on imports in lieu of Excise duty)
· SAD (levied on imports in lieu of VAT)
· Excise Duty levied on Medicinal and Toiletries preparations,
· Surcharges and cesses
· Central Sales Tax

At State level

VAT/Sales tax
· Entertainment tax (unless it is levied by the local bodies)
· Luxury Tax
· Taxes on lottery, betting and gambling
· Entry tax not in lieu of Octroi
Cesses and Surcharges

· Implementation of GST calls for effecting widespread amendments in the Constitution and the various constitutional entries relating to taxationOne of the other major issues concerned is the appropriate designing and structuring of GST in India. The issues involved includes, how the issue of inter-state movement of goods and services may be addressed, taxes on services originating in one state and being consumed in other state etc;
Another contentious issue that is bound to crop up in this regard is the manner of sharing of resources between the Centre and the states as also the basis of their devolution.