No need you have a separate service tax, Value Added Tax (VAT), Swachh Bharat tax ,Krishi Kalyan tax, etc. There was a lot of taxes was calculated and kept differently from one state to another state. Even if you want to transfer goods from one state to another state you end up paying a lot of taxes in each state you pass by thereby increasing your charges enormously.
Now, it is all combined and given the name of one single tax- goods and service tax and will hopefully make all your calculations easier.
What taxes will be covered by GST?
GST will cover the following taxes:
- Central Excise Duty
- Service Tax
- Commercial Tax
- Value Added Tax (VAT)
- Food Tax
- Central Sales Tax (CST)
- Octroi
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Luxury Tax
- Advertisement taxes
- Taxes applicable on lotteries.
