India 2018

246 India 2018
Customs (CBEC). The Department is also entrusted with the administration
and enforcement of regulatory measures provided in the enactments concerning
Central Sales tax, Stamp duties and other relevant fiscal statutes. Control over
production and disposal of opium and its products is vested in this Department.
Goods and Services Tax
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Legislative Development
The proposal to introduce a national level Goods and Services Tax (GST) was
first mooted in 2006-07. The Goods and services Tax Council was constituted in
2016. Presently, the GST Council is deliberating on important GST issues. Central
GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States)
Bill, 2017. GST was implemented in the country in July, 2017. Subsuming of
various central indirect taxes and levies such as central excise duty, additional
excise duties, excise duty levied under the medicinal and toilet preparations
(excise duties) Act, 1955, Service Tax, Additional Customs Duty commonly
known as Countervailing Duty, Special Additional Duty of Customs, and Central
Surcharges and Cesses so far as they relate to the supply of goods and services.
Levy of Integrated Goods and Services Tax on inter-state transactions of goods
and services. Coverage of all goods and services, except alcoholic liquor for
human consumption, for the levy of goods and services tax. In case of petroleum
and petroleum products, it has been provided that these goods shall not be
subject to the levy till a date notified on the recommendation of the GST Council.
Compensation to the states for loss of revenue arising on account of
implementation of the Goods and Services Tax for a period which may extend
to five years.
Indian Stamp Act
The Indian Stamp Act, 1899 is a fiscal statute laying down the law relating to
tax levied in the form of stamps on instruments recording transactions. Briefly,
the scheme relating to stamp duties, provided for in the Constitution is as follows:
i. Under Article 246, stamp duties on documents specified in Entry 91 of the
Union List in Schedule VIl of the Constitution (viz. bills of exchange, cheques,
promissory notes, bills of lading, letters of credit, policies of insurance, transfer
of shares, debentures, proxies and receipts) are levied by the Union but under
Article 268, each State, in which they are levied, collects and retains the proceeds
(except in the case of Union Territories in which case the proceeds form part of
the Consolidated Fund of India). At present duty is levied on all these documents
except cheques. ii. Stamp duties on documents other than those mentioned
above are levied and collected by the states by virtue of the Entry 63 in the State
List in the 7th Schedule of the Constitution. iii. Provisions other than those
relating to rates of duty fall within the legislative power of both the Union and
the states under Entry 44 of the Concurrent List in the Schedule- Vll. iv. The
rates of stamp duty in respect of Debenture and Promissory Notes have been
rationalized by the Central Government in September, 2008.