State-level check posts that collect taxes on the movement of goods will no longer be in use under the Goods and Services Tax regime, which will be rolled out on July 1. Excise collection points, however, will remain in place for the time being as they relate to taxation on alcohol, Revenue Secretary Hasmukh Adhia said on Friday, according to PTI.

The state-level check posts will become redundant as the tax rates for the movement of goods in or outside a state will be the same, Adhia explained, adding that there would be no need to check whether the goods have moved physically out of a state or not.

“As as far as taxation is concerned, the check posts will go. There are a couple of other check posts like the state excise check posts. State excise is the state duty on liquor/alcohol, now these things may remain,” he said on the concluding day of the India Integrated Transport and Logistics Summit 2017.

Petroleum and alcohol products will not be covered under the new indirect tax regime until the GST Council decides to impose a rate on them.

On the issue of service tax, he said the GST Council is yet to decide on it but it might differ for the transportation sector. “Initial expectation of the market is that it should go to about 18% for service tax. As far as transportation sector is concerned, because we are not able to give you the input tax credit that is given on petrol and diesel, the rate will be different,” he said

The next meeting of the GST Council is scheduled for May 18-19.

The Centre believes the GST will help create a unified market in the country, avoiding double taxation and increase compliance. The GST will have a central component and a state component, which both forms of government will administer at their levels.