Accounting for India's Forest Wealth - Madras School of Economics

electricity duty levied by the States should be subsumed in the SGST.Table 6 shows the provision for environmental taxes/ Demerit goods bythe Empowered Committee, Task Force and the Thirteenth FinanceCommission.The tax on vehicles and the tax on goods and passengers leviedby the State Governments should also be subsumed in the GST. Alltransport equipments and all forms of services for transportation ofgoods and services by railways, air, road and sea must form an integralpart of the comprehensive GST base recommended by the Task Forceover which both the Central and State Governments would haveconcurrent jurisdiction. The tax regime for the transport equipments andtransport services should be the same as in the case of any other normalgoods.The Task Force refers to the demerit goods as sin goods. The singoods are listed as emission fuels, tobacco products and alcohol, whichshould be subject to a dual levy of GST and excise. No input credit shouldbe allowed for this excise duty. However, industrial fuels should besubjected only to GST (both Central and State) with the benefit of inputcredit like any other intermediate good.26