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Browse Law School Education Taxation Demystifying Goods and Services Tax (GST)

There are lot of indirect taxes and there are lot of goods which are still outside GST. 

A very common known example is petroleum products. 

The scheme today is that GST Council will take a decision when these products are brought into GST, till that period of time they will continue to be subject to excise duty and VAT. 

Besides petroleum products, alcoholic liquor for human consumption is a subject, which is permanently excluded from GST. 

The way GST is defined in the Constitution it means, any tax on supply of goods or services other than alcoholic liquor for human consumption which means GST can never be levied on alcoholic liquor. 

Besides alcohol, tobacco has also a unique status in GST. Tobacco is subject to excise duties and still a part of GST. 

Then there are certain products which are excluded from GST at the moment. For eg. electricity, taxes on consumption or sale of electricity is an area which is not been subsumed in GST. Real estate, immovable property, purchase of land, sale of land, taxes on land and building, stamp duties these are also other areas which are excluded from scope of GST. 

Besides these, there are number of minor taxes which are excluded for eg. there is a tax on vehicles, so when you buy a vehicle it is subject to tax which is not GST. Then you have other taxes, namely terminal taxes, namely toll taxes, so there are certain other taxes certain other goods which are excluded from GST. 

This effectively means that for these products and these taxes which are not subsumed in GST, the old scheme which was prevailing earlier will continue to govern them.