Difference between GST, Excise, VAT/Sales Tax and Service tax

  • By:Durlov Bhattacharya
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Let us discuss some of the most important difference between the existing excise duty, VAT/sales tax, service and new GST.

Factors GST Regime Excise Duty VAT/Sales Tax Service Tax
Levied on Supply of goods or services or both Manufacture of Goods & not applicable on services Trading or goods and not applicable on services Applicable on rendering of services only
Levied by Central & State government both Central & State Government – max by Central Government Levied by State Government – Central has no right Levied only by central govt – state govt has no right
Average Tax rate There are 5 rates; 0%, 5%, 12%, 18% and 28% The excise duty rate is 12% on an average There are five rates which also differ state to state The current tax rate is 15%
Returns 3 Monthly returns 2 to 3 monthly returns 4 Quarterly returns 2 Half yearly returns
Basic Exemption Upto Rs. 20 lakh (Rs. 10 lakh for North eastern states) No excise duty upto 1.5 Cr 10 to 20 lakh, differ state to state SSI exemption of Rs. 10 lakh
Due date tax Monthly by 20th of next month. Monthly by 15th of next month. Quarterly for individual / HUF monthly for others Quarterly for individual / HUF monthly for others
ITC Available in most cases Less as compared to GST Very complex & differ state to state Available in most cases
Ease? Complex structure Highly complex Hight problematic Less complex than GST
Posted in: Goods & Service Tax (GST)

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