In India, The Goods and Services Tax (GST) is an indirect tax that has supplanted many taxes and levies. The GST regime has significantly changed the taxation system, simplifying the taxation process and reducing the burden of multiple taxes. However, many taxpayers still need clarification about which taxes have been subsumed under the GST regime. Let's have a closer look at this.

What are the taxes subsumed in GST?

The taxes subsumed in GST are:

1. Central Excise Duty
2. Additional Excise Duty
3. Service Tax
4. Additional Custom Duty (Countervailing Duty)
5. Special Additional Duty of Customs (SAD)
6. Value Added Tax (VAT)
7. Central Sales Tax (CST)
8. Entry Tax
9. Luxury Tax
10. Entertainment Tax 
11. Taxes on Lottery, Betting and Gambling
12. Octroi and Purchase Tax

Conclusion

GST has revolutionised the Indian tax system by subsuming multiple indirect taxes, making it more straightforward and transparent. Understanding the taxes subsumed in GST is essential for taxpayers to comply with the law and avoid penalties. The taxes subsumed in GST include Central Excise Duty, Service Tax, VAT, and several other taxes. However, direct taxes such as income tax, customs duty on imports and taxes on petroleum products are not subsumed in GST.

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.