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What Are The Taxes Subsumed In GST?

What are the taxes subsumed in GST?

India's Goods and Services Tax (GST) has brought a revolution to the tax system, simplifying the process and lightening the burden of multiple taxes. But what exactly does the GST include? Let's dive deeper into the taxes subsumed under this transformative regime.

  • Central Excise Duty
  • Additional Excise Duty
  • Service Tax
  • Additional Custom Duty (Countervailing Duty)
  • Special Additional Duty of Customs (SAD)
  • Value Added Tax (VAT)
  • Central Sales Tax (CST)
  • Entry Tax
  • Luxury Tax
  • Entertainment Tax
  • Taxes on Lottery, Betting and Gambling
  • Octroi and Purchase Tax

Understanding these taxes is crucial for taxpayers, as compliance is key to avoiding penalties. However, it's important to note that direct taxes such as income tax, customs duty on imports, and taxes on petroleum products are not subsumed under the GST.

Read Also:- GST Full Form & GST Meaning In Various Languages

Conclusion

GST has revolutionized the Indian tax system, simplifying and bringing transparency. It's crucial for taxpayers to comprehend the taxes subsumed in GST to ensure compliance and steer clear of penalties. Under GST, taxes like Central Excise Duty, Service Tax, VAT, and other levies are subsumed. However, it's worth noting that direct taxes such as income tax, customs duty on imports, and taxes on petroleum products remain outside the purview of GST. Discover how GST has reshaped the tax landscape, making it more accessible and transparent for all.

Frequently Asked Questions

1. What are the Indirect Taxes that have been subsumed in GST?

In India, the following indirect taxes have been merged into the Goods and Services Tax (GST):

  • Central Excise Duty
  • Service Tax
  • Additional Excise Duty
  • Additional Custom Duty
  • Value Added Tax (VAT)
  • Central Sales Tax 
  • Entertainment Tax 
  • Octroi and Entry Tax
  • Purchase Tax
  • Luxury Tax
  • Any other taxes, levies or duties that the central government or state Governments earlier levied on the supply of goods and services.

2. Which two taxes are not subsumed in GST?

The two taxes that are not subsumed in the GST in India are:

  • Basic Customs Duty (BCD): Basic Customs Duty is a tax levied on goods imported into India. It is outside the purview of GST and continues to be levied as a separate tax.
  • Petroleum Products: Petroleum products such as petrol, diesel, crude oil, aviation turbine fuel, and natural gas are not under the GST regime. These products continue to be taxed under the previous tax system, I.e. excise duty, VAT, and other state taxes. The Indian government is still considering including petroleum items under the GST regime.

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The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

In the Indian GST system, goods and services are classified into various tax slabs: 5%, 12%, 18%, and 28%. Certain essential items are exempt from GST. Gold and job work for diamonds are taxed at a lower rate. Compensation cess is imposed on demerit goods and certain luxury items.

In India, there are four different types of GST taxes:


1. Integrated Goods and Services Tax (IGST)
2. State Goods and Services Tax (SGST)
3. Central Goods and Services Tax (CGST)
4. Union Territory Goods and Services Tax (UTGST)

Entertainment Tax cannot be set off against Service Tax or VAT paid on procurements. The tax burden ultimately falls on the customer. Local bodies have the authority to impose and collect taxes on entertainment and amusement. With entertainment tax now included in GST, the overall tax burden on consumers has decreased.

Current Application of the Different Types of GST

Type of GST Applicable On Rate
CGST Intra-state supply of goods and services within a state 0%-28%
IGST Inter-state supply of goods and services between different states or Union Territories 0%-28%
UTGST Intra-state supply of goods and services within a Union Territory 0%-28%

India has three types of GST: CGST, SGST, and IGST. This clear classification simplifies distinguishing between interstate and intrastate goods and helps in reducing indirect taxes.

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