Section 1. Subs. by Act 12 of 2020, s. 138, for "three years" (w.e.f. 27-03-2020)

1. Subs. by Act 12 of 2020, s. 138, for "three years" (w.e.f. 27-03-2020). STATEMENT OF OBJECTS AND REASONS Presently, the Constitution empowers the Central Government to levy excise duty on manufacturing and service tax on the supply of services. Similarly, it empowers the State Governments and Union territories to levy sales tax or value added tax on the sale of goods. In addition, many States also levy an entry tax on the entry of goods in local areas. This exclusive division of fiscal powers has led to a multiplicity of indirect taxes in the country.