The
Central Government in the last three General Budgets viz 2015-16, 2016-17 and
2017-18 has gradually abolished various cesses on Goods and Services in order
to prepare the ground for smooth roll- out of Goods and Service Tax (GST) from
1st July, 2017. The Central Government has taken this step in stages by
abolishing various cesses so that it is easier to fit in various goods and
services in different tax slabs for GST.
The
Central Government in its General Budget 2015-16 had abolished education Cess, including
Secondary and Higher Education Cess on taxable services, and exempted Education Cess on
excisable goods as well as Secondary and Higher Education Cess on excisable
goods.
In
its General Budget 2016-17, the Central Government abolished cess on cement,
strawboard, three cesses including cess on Iron Ore
Mines, Manganese Ore Mines and Chrome Ore Mines by amending Labour Welfare Cess
Act, 1976, Tobacco cess by amending the Tobacco Cess Act 1975, and Cine Workers
Welfare Cess by amending the Cine Workers’ Welfare Cess Act 1981 among others.
In
its General Budget 2017-18, the Central Government abolished Research and
Development cess by amending the Research and Development Cess Act.
Through
taxation Laws Amendment Act 2017, the following cesses are abolished. However,
the date of the implementation will coincide with the date of the GST roll-out:
i)
The
Rubber Act 1947 – Cess on Rubber
ii)
The
Industries (Development and Regulation) Act 1951 – Cess on automobile
iii)
The
Tea Act 1953 – Cess on Tea
iv)
The
Coal Mines (Conservation and Development) Act, 1974 – Cess on Coal
v)
The
Beedi Workers’ Welfare Cess Act 1971 – Cess on Beedis
vi)
The
Water (Prevention and Control of Pollution) Cess Act 1977 – Cess levied on Water
consumed by certain industries and by local authorities.
vii)
The
Sugar Cess Act 1982, the Sugar Development Fund Act 1982 – Cess on Sugar
viii)
The
Jute Manufacturers Cess Act 1983 – Cess on Jute Goods manufactured or produced
or in part of Jute.
ix)
The
finance (2) Act 2004 – Education Cess on Excisable Goods
x)
The
Finance Act, 2007 – Secondary and Higher Education Cess on Excisable Goods
xi)
The
Finance Act 2010 – Clean energy Cess
xii)
The
Finance Act 2015 – Swachh Bharat Cess
xiii)
The
Finance Act 2016 – Infrastructure Cess and Krishi Kalyan Cess
However, the
following cesses will continue to be levied under the GST regime since they
pertain to customs or goods which are not covered under the GST regime:
i)
The
Finance (2) Act 2004 – Education Cess on Imported Goods
ii)
The
Finance Act, 2007 – Secondary and Higher Education Cess on Imported Goods
iii)
Cess
on Crude Petroleum oil under the Oil Industry Development Act, 1974
iv)
Additional
Duty of Excise on Motor Spirit (Road Cess)
v)
Additional
Duty of Excise on High Speed Diesel Oil (Road Cess)
vi)
Special
Additional Duty of Excise on Motor Spirit
vii)
NCCD
on Tobacco and Tobacco Products and Crude Petroleum Oil.
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DSM/KA
