Page 4 - Chapter 1

01. Indirect tax structure in India before 1st July 2017 Central levies to be subsumed State levies to subsumed
CH 1 Discuss how GST resolved the double taxation dichotomy under previous indirect Central Excise Duty & Additional VAT/ Sales tax
CCP 01.01.01.00
Introduction of GST tax laws. (ICAI material) Excise Duty under Medicinal & Toilet Entertainment Tax (except those
Excise Duties

Service Tax
Central Sales Tax
Answer:- Input Tax Credit (ITC) of CGST and SGST/UTGST is available
throughout the supply chain,
levied by local bodies)
Preparation Act
Additional Customs Duties (ACD)
To cover both goods and services viz. Goods
Ø A comprehensive tax structure:-
under CTA, 1975
and Service Tax (GST) addresses these problems. Simultaneous introduction
Surcharges and Cesses in so far as Tax on lottery, betting and gambling
of GST at both Centre and State levels has integrated taxes on goods and Entry Tax (All Forms) & Purchase
they relate to supply of goods &
services for the purpose of set-off relief and ensures that both the cascading Tax
services
effects of CENVAT and service tax are removed and a continuous chain of Luxury Tax
set-off from the original producer's point/ service provider's point upto the Taxes on advertisements
retailer's level/ consumer's level is established. State surcharges and cesses in so far as
Ø One Single tax: - In the GST regime, the major indirect taxes have been they relate to supply of goods & services

subsumed in the ambit of GST. The erstwhile concepts of manufacture or
sale of goods or rendering of services are no longer applicable since the tax is 03. Concepts and principal of GST
now levied on "Supply of Goods and/or services". CCP 01.03.04.00
Explain concept & principle of GST?
02. Taxes subsumed in GST Answer : GST is a – destination based indirect tax, levied on value added to goods/
CCP 01.02.02.00 services/ both at each stage of supply chain.
Which are the commodities kept outside the purview of GST? Concepts & Principles: -

Answer: i) Supply of alcoholic liquor for human consumption Ø GST is a Broad -Based Value added tax
ii) Petroleum products: - petroleum crude, motor spirit (petrol), high speed diesel Ø GST is a Destination based tax
iii) Natural gas Ø GST is technically paid by supplier but it is actually borne by consumers
iv) Aviation turbine fuel Ø GST is a collected at multiple stage of production and distribution of goods
and services in which taxes paid on inputs are allowed as set off against taxes
CCP 01.02.03.00 payable on output- No cascading of taxes.
List the taxes to be subsumed in GST? (MTP- ICAI) Ø GST is a tax on the consumption of products from business sources, and not
Answer : on personal or hobby activities

Ø Under GST, continuous chain of tax credits - as input tax credit is provided
throughout the value chain for creditable acquisition.
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CA Final GST Questioner