Analyze the structure of the Goods and Services Tax (GST) introduced in India through the 101st Constitutional Amendment Act, 2016. Which of the following taxes levied by the Central Government was subsumed under GST?

💡 Solution & Explanation

The Central Excise Duty levied on goods manufactured across India was subsumed into the Goods and Services Tax framework when it rolled out on July 1, 2017, alongside state-level value-added taxes, luxury taxes, and entry taxes, to create a unified national market. Basic customs duty on imports remains outside the GST umbrella to protect domestic manufacturing and regulate external trade. GST eliminated the cascading effect of taxation by allowing seamless input tax credit across the supply chain. A related constitutional provision is Article 279A, which established the Goods and Services Tax Council.