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.
Approach · directive: “enumerate / comment”
What it asks · List the central and state indirect taxes that GST replaced, then comment on what the tax has meant for revenue of the Centre and the States since July 2017.
It asks 2 things — answer each
- Enumerate the central and state indirect taxes subsumed in GST
- Comment on the revenue implications of GST since July 2017, for the Centre and the States
Open with · GST, in force from 1 July 2017, folded a web of central and state levies into one destination-based tax; its revenue story since then is one of a widening base and a thinning rate.
Cover
- Central taxes subsumed: central excise and additional excise duties, service tax, CVD, SAD, central cesses and surcharges.
- State taxes subsumed: VAT, central sales tax, purchase tax, luxury tax, entry tax, entertainment tax (except local bodies), taxes on advertisements, lotteries, betting and gambling.
- Kept outside: basic customs duty, alcohol for human consumption, stamp and electricity duties; petroleum products until the GST Council decides.
- Wider base: registered taxpayers rose from 60 lakh to about 1.51 crore; gross collections reached a record Rs 22.08 lakh crore in 2024-25 (PIB).
- Thinning rate: the effective weighted average GST rate fell from 14.4% (2017) to 11.6% (2019) against a 15.3% revenue-neutral rate (GST Council, 2019).
- States: 14% guaranteed growth for five years, funded by the compensation cess, protected budgets but delayed payments strained trust.
- Way forward: the 56th GST Council (September 2025) moved to two slabs, 5% and 18%, with 40% for sin and luxury goods.
Close with · A GST that grows with the economy rather than with its rates is the fiscal spine of One Nation, One Tax, and of Viksit Bharat @2047, shared fairly between the Centre and the States.
Add value (verified)
- CBIC's own list of the state taxes subsumed under GST can be used to check that an enumeration is complete; the same page lists the central taxes.Know About GST, Central Board of Indirect Taxes and Customs (cbic-gst.gov.in) ↗“State taxes that would be subsumed under the GST are: State VAT Central Sales Tax Luxury Tax Entry Tax (all forms) Entertainment and Amusement Tax (except when levied by the local bodies) Taxes on advertisements Purchase Tax”
- PIB (1 July 2025, eight years of GST): gross GST collections reached a record Rs 22.08 lakh crore in 2024-25, 9.4% higher than the previous year, averaging Rs 1.84 lakh crore a month.PIB backgrounder: Eight Years of GST (2025) ↗“In 2024–25, GST recorded its highest-ever gross collection of ₹ 22.08 lakh crore, reflecting a year-on-year growth of 9.4 percent. The average monthly collection stood at ₹ 1.84 lakh crore.”
- PIB (2025): the number of registered GST taxpayers grew from 60 lakh at launch to around 1.51 crore, and average tax rates came down.PIB backgrounder: Eight Years of GST (2025) ↗“With the removal of multiple taxes and improved compliance, the average tax rates have come down. The number of registered taxpayers has grown from 60 lakh to around 1.51 crore.”
- GST Council newsletter (October 2019): its chart of the weighted average (effective) GST rate shows 14.4% in May 2017 falling to 11.6% by July-September 2019, against the 15.3% revenue-neutral rate; the Arvind Subramanian committee (2015) had recommended an RNR of 15-15.5%.GST Council newsletter, October 2019 ↗“15.3 14.4 12.6 12.2 11.8 11.6 11.6 Subramanian Comm. Rec. May - 17 Nov - 17 Jan - 18 Jul - 18 Dec - 18 July and Sep. 19 Weighted Average (Effective) GST Rate Trend of weighted average GST Rate vis-à-vis Revenue Neutral Rate (RNR)”
- PIB (September 2025): the 56th GST Council reduced the four slabs (5%, 12%, 18%, 28%) to two main rates, 5% and 18%, with a 40% special rate for sin and luxury goods, effective 22 September 2025.PIB: Next-Gen GST overhaul (September 2025) ↗“In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates—5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods. These changes come into effect from September 22, 2025.”
Question: UPSC's CS (Main) 2019, GS Paper III — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 225words · Minimalist IAS
GST, in force from 1 July 2017, folded many central and state levies into one destination-based tax on supply. Its revenue story since then: a widening base and a thinning rate.
Indirect taxes subsumed in GST
| Level | Taxes subsumed |
|---|---|
| Central | Central excise and additional excise, service tax, CVD, SAD, central cesses and surcharges |
| State | VAT, central sales tax, purchase, luxury, entry and entertainment taxes; taxes on advertisements, lotteries, betting and gambling |
| Kept out | Basic customs duty, alcohol, stamp and electricity duties; petroleum until the GST Council decides |
Revenue implications since July 2017
- Wider base: registered taxpayers grew from 60 lakh to about 1.51 crore as input tax credit rewarded compliance (PIB, 2025).
- Record collections: gross GST reached Rs 22.08 lakh crore in 2024-25, up 9.4%, after an uneven start.
- Rate erosion: the effective weighted average rate fell from 14.4% (2017) to 11.6% (2019), against the 15.3% revenue-neutral rate (GST Council, 2019).
- States' cushion: 14% guaranteed growth for five years, funded by the compensation cess, protected state budgets, though delayed payments strained trust.
Way forward
- Fewer slabs, firmer compliance: the 56th GST Council (September 2025) moved to 5% and 18%, with 40% for sin goods; data matching must guard the base.
A GST that grows with the economy, not with its rates, is the fiscal spine of One Nation, One Tax and of Viksit Bharat @2047.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
