Existing indirect tax structure in India

 

Existing indirect tax structure in India

As per Act.246(1) of Constitution of India, the parliament has exclusive powers to make laws with respect to any matters enumerated in List I of the seventh schedule to the Constitution of India (Called union List).

As per Art. 246 (3), the state governments have exclusive powers to make laws with respect to the matter enumerated in List II (called state List)-

Schedule VII of the Constitution consists of following three lists --

(1) List I (Union List) contain entries over which the central government has a power to legislate.

(II) List II (State List) contains entries over which the state government has a power to legislate, and

(III) List III (Concurrent List) contains entries over which both the central government and the state government has a power.

Broad indirect taxes/duties in Schedule VII of the Constitution

UNION LIST (LIST I)

 > Entry 83 - Duties of Customs

> Entry 84 - Duties of Excise

> Entry 92A - Taxes on sale or purchase of goods between two State (CST)

> Entry 92B- Taxe on the consignment of goods, where such consignment takes place in the course of inter-state trade.

> Entry 92C - Taxes on services

> Entry 91-Stamp duty in respect of bill of exchange, cheques,promissory notes, bills of lading.

> Letter of credit, insurance policies, transfer of shares, debentures, proxies & receipts.

STATE LIST (LIST II)

>Entry 51 - Excise duty on Alcoholic Liquors, Opium & Narcotics.

> Entry 52 - Taxes on entry of goods.

> Entry 53 - Taxes on the consumption or sale of electricity

> Entry 54 - Taxes on sale and purchase of goods where such sale/ purchase takes within the state (VAT), subject to Entry 92A of List I.

> Entry 55 - Taxes on advertisements other than in newspaper, radio ad television.

> Entry 62 - Taxes on luxuries, entertainments, amusements, betting and gambling.

> Entry 63 - Stamp duty in respect of document other than those specified in List I.

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