Goods and Services Tax subsumes
Last updated May 30, 2026
Correct Answer:
Option D —
Value Added Tax
While the Goods and Services Tax (GST) is a comprehensive indirect tax, it does not subsume all indirect taxes. Certain indirect taxes (like Basic Customs Duty on imports, taxes on electricity, alcohol for human consumption, and specific petroleum products) remain outside its ambit. It completely replaced the Value Added Tax (VAT) at the state level, along with several other central and state indirect levies.Major Taxes NOT Subsumed under GST
Direct Taxes: Income Tax, Corporate Tax, and Capital Gains Tax remain entirely separate.
Excluded Indirect Taxes/Items:
Customs Duty (Basic Customs Duty is still levied separately).
Stamp Duty and Registration Charges on property.
Electricity Duty.
Alcohol for human consumption (State Excise and VAT still apply).
Five Petroleum Products (Crude oil, diesel, petrol, natural gas, and aviation turbine fuel).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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