The announcement of the requirements of the Constitution Amendment Act for the Goods and Services Tax has gone ahead to perplexity over Centre's control to tax excise duty.
On the starting note,GST will not be valid on liquor and petroleum which considered as the main sources of income for states.
As per the Arun Anandagiri of Taxsutra.com give details how the GST is an circuitous tax improvement that includes a swing of levies like the excise duty and service tax.
Both the house- Rajya Sabha and Lok Sabha have been passed the Constitution Amendment Bill.
He further added that, “Since all provisions of the Bill have been notified, what is envisioned is GST will be levied on petroleum products, too. The confusion is whether the Centre has any power on levying excise duty on non-petroleum products”
He also added that, “he expects the finance ministry to elucidate the stance”