Budgeting and Fiscal policy

Indian Economy (CDS)

Title

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8 of 24 completed

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38 of 100 completed

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Indian Economy - Understanding the basics of Indian economic system

Consider the following taxes:

1. Central Excise Duty

2. Service Tax

3. Central Sales Tax

4. Tax on alcoholic liquor

5. Octroi

Which of the taxes given above have been subsumed in GST?

1, 2 and 3 only

2, 3 and 4 only

1, 2, 3 and 5 only

1, 2, 3, 4, and 5

GST has replaced various types of taxes/cesses, levied by the Central and State/UT Governments. Some of the major taxes that were levied by the centre were Central Excise Duty, Service Tax, Central Sales Tax, and Cesses like KKC and SBC.
The major State taxes were VAT/Sales Tax, Entry Tax, Luxury Tax, Octroi, Entertainment Tax, Taxes on Advertisements, Taxes on Lottery /Betting/ Gambling, State Cesses on goods, etc.
These have been incorporated into the GST. Five petroleum products have been kept out of GST for the time being, but with time, they will get subsumed in GST. State Governments will continue to levy VAT on alcoholic liquor for human consumption. Tobacco and tobacco products will attract both GST and Central Excise Duty.