Q. Which of the following state taxes is/are subsumed under Goods and Service Tax (GST)?
1. State VAT
2. Central Sales Tax
3. Entry Tax
Select the correct answer using the codes given below:

[A] 1 only

[B] 1 and 2 only

[C] .2 and 3 only

[D] 1, 2 and 3

Answer: D

The introduction of the Goods and Services Tax (GST) is a very significant step in the field of indirect tax reforms in India.  

By amalgamating a large number of Central and State taxes into a single tax, GST will mitigate ill effects of cascading or double taxation in a major way and pave the way for a common national market.  

The government rolled out GST with effect from 1st July 2017. State taxes that would be subsumed within the GST are:- 

  • State VAT 
  • Central Sales Tax 
  • Purchase Tax 
  • Luxury Tax 
  • Entry Tax (All forms) 
  • Entertainment Tax and Amusement Tax (except those levied by the local bodies) 
  • Taxes on advertisements 
  • Taxes on lotteries, betting and gambling 
  • State cesses and surcharges in so far as they relate to supply of goods and services. 

Source: Sriram’s IAS