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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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