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Question
Q. Which of the following taxes are not subsumed within the ambit of the GST?
Select the correct answer using the code given below.
Q. Which of the following taxes are not subsumed within the ambit of the GST?
Select the correct answer using the code given below.
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Solution
The correct option is B 1, 3 and 5 only
Explanation:
- GST is a tax levied when a consumer buys a good or service. It is meant to be a single, comprehensive tax that will subsume all the other indirect taxes on consumption like service tax, etc.
- Central Sales tax applies to the sale or purchase of goods that takes place in the course of inter-State trade or commerce. Octroi and Entry tax are indirect local taxes levied by the tax authorities when goods enter their jurisdiction (Ex- the city or the state concerned). Both have been subsumed under GST
- Alcohol is currently outside the purview of GST and hence the older tax structure prevails. Excise on Alcohol is thus not subsumed under GST
- Basic Customs duty is the tax imposed on goods when they are transported across international borders. BCD has been kept outside the purview of GST and will be charged as per the current law only (Customs Act of 1962 and Customs Tariff Act of 1975). Countervailing Duty (CVD) and Special Additional Duty (SAD) are part of the GST
- Stamp duty is the tax imposed during the sale of property and is collected by the state governments. It is outside the purview of the GST ambit.
Explanation:
- GST is a tax levied when a consumer buys a good or service. It is meant to be a single, comprehensive tax that will subsume all the other indirect taxes on consumption like service tax, etc.
- Central Sales tax applies to the sale or purchase of goods that takes place in the course of inter-State trade or commerce. Octroi and Entry tax are indirect local taxes levied by the tax authorities when goods enter their jurisdiction (Ex- the city or the state concerned). Both have been subsumed under GST
- Alcohol is currently outside the purview of GST and hence the older tax structure prevails. Excise on Alcohol is thus not subsumed under GST
- Basic Customs duty is the tax imposed on goods when they are transported across international borders. BCD has been kept outside the purview of GST and will be charged as per the current law only (Customs Act of 1962 and Customs Tariff Act of 1975). Countervailing Duty (CVD) and Special Additional Duty (SAD) are part of the GST
- Stamp duty is the tax imposed during the sale of property and is collected by the state governments. It is outside the purview of the GST ambit.
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