Taxes Replaced Under GST In India With Exceptions

Before understanding which taxes have been replaced by the GST in India, let us first understand the taxation system in India. The Indian taxation system is classified into two parts namely Direct Taxes & Indirect Taxes.

Direct tax is collected by Central Government. Whereas Indirect Tax used to be collected by the Central and State government & local bodies. For Instance, Entry Tax and VAT were charged by State Government but along with this Central Government. Other taxes like Property Tax, Water Tax, Toll Tax etc. were levied by the Local Bodies.

For better enforcement, tax payment and ease of compliance government subsumed a large number of Indirect Taxes in GST. But Many of us think that with the commencement of GST in the nation, all the previous taxes have been replaced. On the other hand, there are still some taxes that are still charged independently. That is described as follows-

Central Taxes Replaced by GST-

  • Additional duties of excise
  • Central Excise Duty
  • Excise duty levied under Medicinal & Toiletries Preparation Act
  • Additional duties of Excise levied under Textiles & Textile Products
  • Additional duties of Customs(CVD & SAD)
  • Service Tax
  • Surcharges & Cesses
  • Central Sales tax

At the state level below mentioned taxes have been replaced by GST-

  • State VAT/Sales Tax
  • Central Sales Tax
  • Purchase Tax
  • Entertainment Tax(Other than those levied by local bodies)
  • Luxury Tax
  • Entry Tax(All Forms)
  • Taxes on lottery, betting & gambling
  • Surcharges & Cesses
  • Taxes on advertisements
Although GST’s motto is “One Nation One Tax”. Yet there are some taxes which are not covered under GST such as-

Taxes Not Covered by GST

  • 1. Property Tax & Stamp Duty
  • 2. Electricity Duty
  • 3. Excise Duty on Alcohol
  • 4. Basic Custom Duty
  • 5. Petroleum crude, Diesel, Petrol, ATF & Natural Gas
Taxes Under GST
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.