Additional tax can be charged on imports that are in conflict with local produced and reviewed/adjusted as and when required to keep the balance "politically too" for local farmers, manufacturers, tourist purchase refunds, etc.
See typical GST & Tax in Singapore. You can search the same for China and other countries which are similar to India.
5% for Mid segment items.
15% for Luxury items. more
As far as GST is concerned, while it is also confusing and beyond understanding of small traders and has to face lot of victimization and corruption. There are tax inspectors who are every now and then are enjoying lavishly life and many junior inspectors even keep on with expensive tourist package staying in five star hotels incl for all of their family members. It is a laughing stock when we hear about 28% GST or may be 100% excise duty and taxes like in petroleum products and then befool the citizens that we want to reduce the prices and uplift the society. I agree some of the points specially if we would have made a single tax rate may be 2% to 5% for all the commodities across the board, the corruption would have ended. If I had to buy a table worth Rs. 10,000/- I am required to shell out appox Rs. 3,000/- extra and the question would be why should I shell out additional Rs. 3,000/- towards taxes and thus would get encourage by avoiding the taxes and pay in cash generating black money and guarantying the corrupt earning for the corrupt taxation department. more