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

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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
Table 6: Provision for Environmental Taxes/Demerit GoodsEmpoweredCommitteeTaxation of PetroleumProductsCrude, motor spirit(including ATF) andHSD would be keptoutside GST Sales Taxcould continue to belevied by the States onthese products withprevailing floor rate.Centre could alsocontinue its levies.On Natural Gas a finalview has not beentaken yet.Sales Tax/VAT tocontinue on alcoholicbeveragesIn case it has beenmade Vatable by someStates, this maycontinue.Tobacco products wouldbe subjected to GSTwith ITC. Centre maybe allowed to levyexcise duty on tobaccoproducts over andabove GST without ITC.Task Force (13 th FC)The sin goods are listed asemission fuels, tobaccoproducts and alcohol,which should be subject toa dual levy of GST andexcise. No input creditshould be allowed for thisexcise duty. However,industrial fuels should besubjected only to GST(both Central and State)with the benefit of inputcredit like any otherintermediate good.tax/fee/charge/cess whichis essentially in the natureof a user charge for supplyof goods and services(includingenvironmental goodsand services) also shouldnot be subsumed underthe CGST or SGST.Further, both Centre andthe States should takesteps to consolidate alltaxes (other than proposedGST) on the sin goods as asingle levy termed asCentral Excises andState Excises,respectively.13th FinanceCommissionHSD, MS, and ATF couldbe charged GST and anadditional levy byboth the Central andState Governments. Noinput credit would beavailable against eitherCGST or SGST on theadditional levy.A similar treatmentwould be provided toalcohol and tobacco.Such an arrangement totake care ofenvironmental concerns.27
Page 6: with mobile firms, Wellisch (1995)
Page 12 and 13: With a reasonable change in the rel
Page 14 and 15: of state VAT, most states had agree
Page 16 and 17: commodities, common for all the Sta
Page 18 and 19: Reduction of indirect tax rates led
Page 20 and 21: 4. THE GST: THREE VERSIONSThe basic
Page 22 and 23: Table 2: Central and State Taxes to
Page 24 and 25: Table 3: Mechanism of handling Inte
Page 26 and 27: i. All public services of Governmen
Page 28 and 29: tobacco products. Following the con
Page 32 and 33: Any amount collected through these
Page 34 and 35: Table 7: Impact of the Green Shift
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Page 40 and 41: tonne on domestically produced and
Page 42 and 43: State Finance Ministers, The Task F
Page 44 and 45: GoI (2005), A White Paper on State-
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