Taxes on services can be levied by centre only

Q.  Taxes on services can be levied by
- Published on 04 Aug 16

a. Centre
b. States
c. Centre and States both
d. None of the above

ANSWER: Centre
 
  • Centre cannot impose any tax on goods beyond manufacturing (Excise) or primary import (Customs) stage, while states do not have the power to tax services.
  • State government has power to tax on sale of goods but centre has powers over tax on the production or manufacturing.
  • Once the GST Bill is passed, there will only be a national-level central GST and a state-level GST spanning the entire value chain for all goods and services, with some exemptions.
  • Centre can also levy Integrated GST for interstate trade.

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