Consumption/VAT/Sales Tax in India
- Nature of the Tax
- Value Added Tax (VAT) and Sale taxes, depending on the State. For more details, consult the business portal of India. A nationwide Goods and Services Tax (GST) whose rate will be around 14-16% is expected to be launched in April 2012.
- Standard Rate
- Reduced Tax Rate
- The lower rates are 4% (agriculture and industrial inputs) and 1% (gold and silver ornaments).
- Exclusion From Taxation
- The State is not authorized to impose state VAT on the imports of goods into India or exported out of India.
- Method of Calculation, Declaration and Settlement
The interstate sales tax levied by the central government is known as central sales tax (CST) and intra state sales tax levied by respective state governments is known as local sales tax (LST/VAT). VAT has replaced existing local sales tax laws in almost all the states of India.
For details consult the Income Tax Department.
- Other Consumption Taxes
Service Tax (12%) applies to more than 100 services. For details visit the web site: Service Tax.
Excise Duty: 8% (on drugs, pharmaceuticals, cans, paper, Water filtration and purification devices, etc), 12% (small cars, packaged software), 14% (cement) and 24%.
For further information consult the Central Board of excise and Customs.
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