Bringing the Curtains Down
New Delhi: This budget marks the exit of central excise duty--the factory gate tax levie d on manufact u re d goods when they leave the production site--and service tax. The country will soon shift to the consumptionbased goods and services tax.
GST, which seeks to replace excise, service tax and central cesses besides states taxes including value-added tax, octroi and purchase tax with a single levy, is expected to be rolled out from July 1.
These two central levies as also countervailing duty will disappear from budget papers once GST kicks in. Finance minister Arun Jaitley has refrained from any significant tinkering with the central excise duty and service tax structure, in line with the impending rollout of the new tax. Some of the levies proposed in this budget will end on June 30 like the excise duty on populated circuit boards. —Our Bureau