GST: Cesses ruled out!
A number of related changes have also been made for the swift roll-out of the GST reform. The government is making all efforts to make GST implementation hustle free and smooth. As one of the measures in the same sequence, a number of cesses that were earlier prevalent earlier have been abolished by the government. Let’s have a look!
There are various cesses whose date of implementation will coincide with the date of GST opening. The Taxation Laws Amendment Act, 2017, has abolished these cesses for proper implementation of GST. These are as follows:
a) The Rubber Act, 1947 – Cess on Rubber
b) The Industries (Development and Regulation) Act, 1951 – Cess on Automobile
c) The Tea Act, 1953 – Cess on Tea
d) The Coal Mines (Conservation and Development) Act, 1974 – Cess on Coal
e) The Beedi Workers’ Welfare Cess Act, 1971 – Cess on Beedis
f) The Water (Prevention and Control of Pollution) Cess Act, 1977 – Cess levied on Water consumed by certain industries and by local authorities.
g) The Sugar Cess Act 1982, the Sugar Development Fund Act, 1982 – Cess on Sugar
h) The Jute Manufacturers Cess Act, 1983 – Cess on Jute Goods manufactured or produced or in part of Jute.
i) The Finance (2) Act, 2004 – Education Cess on Excisable Goods
j) The Finance Act, 2007 – Secondary and Higher Education Cess on Excisable Goods
k) The Finance Act, 2010 – Clean Energy Cess
l) The Finance Act, 2015 – Swachh Bharat Cess
m) The Finance Act, 2016 – Infrastructure Cess and Krishi Kalyan Cess
However, there are 7 cesses pertaining to customs or goods that are not covered under GST. These will continue to be levied under the GST regime. They are as follows:
a) Education Cess on Imported Goods
b) Secondary and Higher Education Cess on Imported Goods
c) Cess on Crude Petroleum Oil under the Oil Industry Development Act, 1974 d) Additional Duty of Excise on Motor Spirit (Road Cess) e) Additional Duty of Excise on
d) Additional Duty of Excise on Motor Spirit (Road Cess) e) Additional Duty of Excise on
e) Additional Duty of Excise on High Speed Diesel Oil (Road Cess) f) Special Additional Duty of Excise on Motor Spirit g) NCCD on Tobacco and Tobacco Products and Crude Petroleum Oil.
f) Special Additional Duty of Excise on Motor Spirit g) NCCD on Tobacco and Tobacco Products and Crude Petroleum Oil.