CURRENT INDIRECT TAX REGIME

Tax / Duty Incidence of tax Assesse Nature of tax Rate of Tax Government
Custom Duty
Import of goods into India Importer Destination based tax on goods
  • BCD – 10%
  • CVD – 12.5%
  • SAD – 4%
Central Government
Excise Duty
Manufacture/Removal of goods Manufacturer/First Stage Dealer Origin based tax on goods
  • 12.5%
  • 4 %
Central Government
Service Tax
Provision/receipt of services Service provider/receiver Destination based tax on services
  • 15%
Central Government
CST
Inter – state sale of goods Dealer of such goods Origin based tax on goods
  • 2%
  • 5%
  • -15%
State Government
VAT
Intra – state sale of goods Dealer of such goods Destination based tax on goods
  • 1%
  • -15%
State Government
Entry Tax
Import of goods from other states Importer (Dealer) of such goods Destination based tax on goods Rate varies locally State Government
Entertainment Tax
Event providing entertainment Entertainment provider Destination based tax on entertaining events Destination based tax on entertaining events State Government
Octroi
Import of goods into municipal area Importer (Dealer) of such goods Destination based tax on goods Rate depends on municipality where goods are consigned Municipality