Different Taxes Under GST. Act

         No tax is payable on sale of goods specified in Schedule I. no tax is also payable on goods exempted under section 49 of the GST Act.

Sales tax is levied at first stage of sale of goods specified in Schedule II-A.

         General Sales Tax is levied at last stage of sale of goods specified in Schedule II-B. At present, there are only three commodities on which G.S.T. is levied. These commodities are cotton, hide and skin and Natural & associated gas. On rest of the commodities, tax is levied on first point of sale.

         Sales Tax under section 3A is payable by a dealer on rental charges for transfer of right to use the goods specified in Schedule-III.

Turnover tax is deleted with effect form 1/4/97.

         Purchase tax under section 15 is payable by a dealer on the goods specified in Schedule II-A and II-B purchased from a person who is not a registered dealer. This tax is leviable when the goods so purchased are not resold within the State.

         Purchase tax under section 15-A is payable by a dealer holding Recognition for purchase of goods against prescribed declaration. This tax is also payable by a commission agent purchasing goods against prescribed declaration on behalf of his principal who is holding recognition.

         Purchase tax under section 15-B is payable by a dealer on purchase of taxable goods (other than declared goods) used in the manufacture of taxable goods.

         Purchase tax payable under section 15-B is admissible as set off under rule 42-E, if the manufactured goods are sold Within the State.

         Purchase tax under section 16 is payable by a dealer holding documents like License, Recognition and Permit, on purchases of goods purchased against declaration if such goods are not sold/used/disposed as per condition of respective declaration.

         Sales Tax or purchase tax as the case may be, is levied on sales or purchases of oil cakes, oil seeds and salt. These three commodities are not covered under schedule. Specific provisions are made in section 19A, 19B and 19C of G.S.T. Act.

Option For Lump-Sum Payment in Lieu of Tax

         A dealer undertaking works contract can opt to pay in lieu of sales tax, a lump sum by way of composition at the rate specified in the Schedule.

         A dealer engaged in specified sale of hiring samiyana, electric fans, electrical goods, furniture and utensils can op to pay in lieu of sales tax, a lump-sum by way of composition at the rate specified in notification issued by Government in this behalf.

         A dealer engaged in sales of Lottery Tickets, can opt to pay in lieu of sales tax, a lump-sum by way of composition at the rate specified under section 55BB of the Act.

Tax Deduction at Source

         In the case of a Works Contract exceeding Rs. 10-Lakhs, the contractee is required to deduct 2% of specified sale price at the time of payment to contractor.

         Where the contractor has given contract to sub-contractor, in that case, if the contractor has deducted the tax from payment to sub-contractor, then, contractee will not have to deduct tax from payment to contractor.

         The amount so deducted is to be paid into a Government Treasury within 10 days. Necessary, ancillary provisions are also made in section 57A and 57B of the Act.