## What GST Replaced – and What It Did Not

### Taxes Subsumed in GST

Central Taxes Subsumed	State Taxes Subsumed
Central Excise Duty	VAT / State Sales Tax
Additional Duties of Excise	Entertainment Tax (except by local bodies)
Service Tax	Octroi & Entry Tax
Central Sales Tax (CST)	Luxury Tax
Countervailing Duty (CVD)	Taxes on lottery, betting, gambling
Special Additional Duty (SAD)	State cesses & surcharges on supply of goods/services

### Taxes NOT Subsumed (Still Levied)

Basic Customs Duty (on imports)
Stamp Duty (on instruments)
Property Tax, Toll Tax, Road Tax (by local bodies)
Electricity Duty
Excise on alcoholic liquor for human consumption (constitutionally outside GST)

### Exceptions – Items Outside GST

#### (A) Permanently Excluded (GST will NEVER apply)

For these, only Excise + VAT/CST continue:

1. Alcoholic liquor for human consumption

2. Un-denatured Extra Neutral Alcohol (ENA) / rectified spirit used to manufacture alcoholic liquor for human consumption

#### (B) Temporarily Excluded (GST will apply from a date notified by GST Council)

For these, Excise + VAT/CST continue until notified:

1. Petroleum Crude

2. High Speed Diesel (HSD)

3. Motor Spirit (Petrol)

4. Natural Gas

5. Aviation Turbine Fuel (ATF)

#### (C) Goods Covered in GST AS WELL AS Earlier Tax Regime

For these, GST + Excise are levied (dual levy):

1. Tobacco and tobacco products — Centre still levies Central Excise on top of GST

2. Opium, Indian hemp, and other narcotic drugs and narcotics

> 💡 Mnemonic: "5 Petrol out (temporary), Alcohol & ENA out (permanent), Tobacco & Narcotics in both (dual levy)."

Worked example

### Example 1

Example – Classification of Products

(a) Petrol sold at a pump in Delhi → Excise + VAT (NOT GST, temporarily excluded).

(b) Bottle of whisky sold in a State liquor shop → State Excise + VAT (NOT GST, permanently excluded).

(d) Aviation Turbine Fuel (ATF) loaded at airport → Excise + VAT (NOT GST, temporarily excluded).

(e) Diesel sold at retail outlet → Excise + VAT (NOT GST).

(f) Industrial alcohol (denatured) used for chemical manufacture → GST applies (only liquor for human consumption is excluded).

⚠️ Common exam mistakes

Listing petroleum as 'permanently' excluded — it is temporarily excluded; GST Council can notify its inclusion any time.
Forgetting that tobacco attracts BOTH GST and Excise — a unique dual levy.
Treating ALL alcohol as outside GST — only alcoholic liquor for human consumption is excluded; industrial/denatured alcohol is taxed under GST.
Including Basic Customs Duty as 'subsumed' — only CVD & SAD (which are equivalent to excise/VAT on imports) were subsumed; BCD continues.
Forgetting Entertainment Tax levied by local bodies is NOT subsumed (only State-level Entertainment Tax was).

Reference:

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Taxes Subsumed in GST and Exceptions

Worked example