GST will subsume which of the following taxes 1 Tax levied on sale and purchase of securities 2 Tax ...........

Economic Affairs Tax System

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GST will subsume which of the following taxes?

1. Tax levied on sale and purchase of securities

2. Tax levied on sale and purchase of commodities through commodity exchange trade.

3. Basic custom duty on imports

4. Basic custom duty on exports

Which of the statement given above is / are correct?

Only 1 and 2

All of the above

Only 1, 2 and 4

None of the above.

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Explanation:

- Option 1: Only 1 and 2

- Tax levied on the sale and purchase of securities is not subsumed under GST as it is subject to Securities Transaction Tax (STT).

- Tax on the sale and purchase of commodities through commodity exchanges is not subsumed under GST and may be subject to separate commodity transaction taxes.

- Option 2: All of the above

- None of these taxes are subsumed under GST. GST focuses on goods and services, excluding the financial securities and commodity exchange transactions specified.

- Option 3: Only 1, 2, and 4

- Similar incorrect inclusion of taxes as the ones for trade of securities and commodities.

- Basic customs duty remains outside GST scope as it's a duty on imports and exports.

- Option 4: None of the above

- This is the correct option. None of the taxes listed are subsumed by GST.

Correct Answer: Option 4