Originally the GST is conceived to be a single tax including all central and state indirect taxes and thus eliminate cascading of taxes. Thus the proposed GST will consolidate all the major indirect taxes, including, central excise duty, service tax, state VAT, countervailing duty, special additional duty of customs, octroi and entry tax, purchase tax, luxury tax, taxes on the lottery, betting and gambling, etc.
However, it is not yet clear till the bill is finally passed if the four major state level taxes i.e. tax on petroleum products, electricity duties, excise duty on alcohol, and stamp duty on the immovable property will be a part of GST or not. Perhaps it would be better to let the bill be passed by the Rajya Sabha before speculating on the issue.
Presently taxes on the petroleum products and liquor are shared between the Centre and States, which has led to a cumbersome and complex net of taxes.
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