Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (Answer in 150 words)

GST replaced a multiplicity of indirect taxes with a destination-based, dual levy collected by the Union and States.

Taxes subsumed

• Central excise duty, additional excise duties, service tax, additional customs duty and special additional duty.
• State VAT/sales tax, central sales tax, luxury tax, entry tax, entertainment tax, purchase tax and taxes on advertisements.
• State cesses and surcharges linked to supply were also generally folded into GST.

Revenue implications

GST widened the common market, reduced cascading, improved invoice trails and formalisation, and created a technology-enabled compliance system. However, multiple slabs, exemptions, compliance costs, initial refunds and rate disputes affected buoyancy. Compensation protected States during transition but created fiscal pressure. Revenue performance depends on stable rates, simpler filing, stronger administration and inclusion of informal businesses.

Conclusion

GST is a structural reform whose long-term revenue gains require cooperative federalism and a broad, compliant base.

GST; indirect taxes; fiscal federalism; tax buoyancy