Frequently Asked Questions
What are the unique features of Indian GST?
GST is a dual levy in India and the eligible transactions are subject to levy of both Central Tax and State Tax. Integrated Tax is levied by Centre in the case of inter-State supplies and imports/ exports. Certain goods and services are subjected to a further levy of GST Compensation Cess.
Supplies to or from Union Territories are treated as inter-State supplies. Supplies within a Union Territory without legislature are charged to UT Tax.
India, at this stage, has chosen a slightly truncated GST keeping certain critical sectors outside GST e.g. Petroleum (5 specified products*) and alcoholic liquor for human consumption. Electrical energy is also kept out of GST by providing absolute exemption from whole of tax vide entry no. 104 of Notification No.2/2017- Central Tax (Rate) dated 28.06.2017.
*Petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel