Relevant Website: www.dor.gov.in
Goods and Services Tax
The proposal to introduce a national level Goods and Services Tax (GST) was first mooted
in 2006-07. The Goods and services Tax Council was constituted in 2016. GST was
implemented in the country in July, 2017. Subsuming of various central indirect taxes and levies
such as central excise duty, additional excise duties, excise duty levied under the medicinal and
toilet preparations (excise duties) Act, 1955, Service Tax, Additional Customs Duty commonly
known as countervailing duty, special additional duty of customs, and central surcharges and
cesses so far as they relate to the supply of goods and services. Coverage of all goods and
services, except alcoholic liquor for human consumption, for the levy of goods and services tax.
In case of petroleum and petroleum products, it has been provided that these goods shall not be
subject to the levy till a date notified on the recommendation of the GST Council. Compensation
to the states for loss of revenue arising on account of implementation of the Goods and Services
Tax for a period which may extend to five years.
Indian Stamp Act
The Indian Stamp Act, 1899 is a fiscal statute laying down the law relating to tax levied in
the form of stamps on instruments recording transactions. Briefly, the scheme relating to stamp
duties, provided for in the Constitution is as follows: (i) Under Article 246, stamp duties on
documents specified in Entry 91 of the Union List in Schedule VII of the Constitution (viz., bills
of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance,
transfer of shares, debentures, proxies and receipts) are levied by the Union but under Article
268, each State, in which they are levied, collects and retains the proceeds (except in the case of
Union Territories in which case the proceeds form part of the Consolidated Fund of India). At
present duty is levied on all these documents except cheques. (ii) Stamp duties on documents
other than those mentioned above are levied and collected by the states by virtue of the Entry 63
in the State List in the 7th Schedule of the Constitution. (iii) Provisions other than those relating
to rates of duty fall within the legislative power of both the Union and the states under Entry 44
of the Concurrent List in the Schedule-VII. (iv) The rates of stamp duty in respect of Debenture
and Promissory Notes have been rationalized by the central government in September, 2008.
Central Board of Direct Taxes
The Central Board of Direct Taxes (CBDT), created by the Central Boards of Revenue Act
1963, is the apex body entrusted with the responsibility of administering direct tax laws in India.
It is the cadre controlling authority for the Income Tax Department (ITD). With modern
information technology as a key driver, the CBDT has implemented a comprehensive
computerization programme in the Income Tax Department. The programme is aimed to
establish a taxpayer friendly regime, increase the tax-base, improve supervision and generate
more revenue for the Government. The endeavour is to promote voluntary compliance by
taxpayers and create a non-intrusive and non-adversarial tax administration.