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The law before GST in India

The law before GST in India

Before implementation of GST, India had many indirect taxes charged by a state as well as center. The sale of interstate taxed by the center. India had the dual system of taxation one is state and second is a center.

Central government imposed taxes:

·Income tax:

The tax imposed on the individual based on their income. It had 2 type’s personal income tax and corporate income tax.

·Customs duty:

The tax imposed on an individual for importing and exporting goods.

·Service tax:

The tax imposed the government on service provider on certain service transactions.

·Central excise:

It was another form of indirect tax which imposed on goods manufactured in India.

State government imposed taxes:

·Value-added tax:

Value added tax another form of indirect tax, which was collected by the state. Value added tax was introduced in India on April 1, 2005. Each state has their own VAT rates and laws. The aim of implementing VAT is to make India as a single integrated market.

·Stamp duties and land revenue:

The tax levied on a certain document such as cheque, receipts, marriage license, land transaction and so on this is the stamp duty. Land revenue means a government-levied tax on land and collects it as revenue for them.

·State excise:

The production tax on alcohol, alcoholic preparation, and narcotic substances is collected by the state government is called state excise duty.


Before GST regime, previous tax system had different tax rates such as excise 12.36% and service tax 14%. Even the taxpayer had the huge burden on them in case of paying tax to the government. Tax Compliances was difficult due to owing to the diversity of laws and provisions to be followed.