What is the impact of GST on cess like Swachh Bharat cess etc? What is SIN cess?

Impact on Cess

Cess is another name of revenue planning done by the central Government. It is increasing the tendency of levying cess since it collection does not have to be shared with the state government.

From Swachh Bharat Cess to Education cess, there are presently being 30 cesses and surcharges being levied by the government. However, proposed GST regime, all the cesses and surcharge shall be subsumed into GST tax rate.

Further, the government earned heft revenue of Rs.1.77 lakh crore from 33 different cesses. Hence, if the government is willing to subsume the cesses, then it is natural that the proposed GST tax may be on the higher side.

Cess on sin and energy

GST council has approved the levy of cess on sin and energy. The cess perhaps may only be levied on tobacco or cigarettes. The reason behind this decision is to bring in line with current taxation level.

Conclusion

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