Understanding Taxes Under Goods and Services Tax (GST) in India

India's Goods and Services Tax (GST) is a comprehensive indirect tax that replaced many cascading taxes levied by the Central and State governments. The aim was to simplify the tax structure and create a common national market. However, not all existing taxes were brought under the purview of GST when it was implemented.

Identifying Taxes Not Subsumed by GST

The question asks which of the given taxes was not subsumed under the Goods and Services Tax in India. This means we need to identify the tax from the options that continues to be levied separately, outside the GST framework.

Let's look at the options provided and understand their status under GST:

• Customs Duties: Basic Customs Duty (BCD) levied on imports continues to be outside the GST framework. However, Countervailing Duty (CVD) and Special Additional Duty (SAD), which were equivalent to excise duty and VAT/sales tax respectively, were subsumed under GST (specifically integrated GST or IGST). Since the option just says "Customs Duties", it can be interpreted broadly, but BCD is a significant part that remains outside.
• Central Excise Duties: Most Central Excise Duties on goods manufactured in India were subsumed under GST. For example, excise duty on motor spirit, high-speed diesel, natural gas, aviation turbine fuel, and crude petroleum were kept out, but excise on many other goods was subsumed.
• Service Tax: Service Tax, which was levied by the Central government on services, was fully subsumed under the Goods and Services Tax.
• Taxes on Petroleum and Petroleum Products: Specific taxes like excise duty and VAT on five petroleum products (petrol, diesel, natural gas, aviation turbine fuel, and crude petroleum) and alcohol for human consumption were explicitly kept out of GST when it was rolled out. These products are currently subject to Central Excise Duty and State VAT.

Considering the options and the taxes that were specifically kept out of GST, 'Taxes on Petroleum and Petroleum Products' is a distinct category that remains outside the GST net, with states and the centre continuing to levy taxes on them separately.

Comparison of Subsumed vs. Non-Subsumed Taxes

To further clarify, here's a simplified comparison of some major taxes and their status under GST:

From the table and the analysis, it is clear that Central Excise Duties (mostly) and Service Tax were subsumed. While parts of Customs Duties were subsumed (like CVD and SAD), BCD remains outside. However, 'Taxes on Petroleum and Petroleum Products' as a category is one of the most significant exclusions from GST.

Therefore, the tax that is specifically not subsumed under the Goods and Services Tax in India among the given options is Taxes on Petroleum and Petroleum Products.

Revision Table: GST Subsumption Summary

Additional Information on GST and Tax Structure

The decision to keep taxes on petroleum products and alcohol for human consumption outside GST was primarily due to the significant revenue these taxes generate for both the Central and State governments. Bringing them under GST would require consensus among states on tax rates and could impact their revenue streams considerably. While there have been discussions about bringing petroleum products under GST, it has not happened yet.

GST operates on a dual model, with Central GST (CGST) and State GST (SGST) levied on intra-state supplies, and Integrated GST (IGST) levied on inter-state supplies and imports. The taxes that were subsumed made way for this new unified structure.