Cesses set to go with GST, see increase in Budget

Budget pegs the cess and surcharge collections for FY18 at Rs 2.96 lakh cr

The National Democratic Alliance government plans to shift to the goods and service tax (GST) regime on July 1. In the new indirect tax architecture, some existing cesses, that are currently levied, will be done away with.

Yet the government has budgeted for increases in even those cesses that will cease to exist after July 1. The Budget does not separately show collections in the GST regime but continues to project collections for excise duties and services taxes through the year. This has led experts to question whether the government has factored in the impact of the shift to GST