Three of the following taxes have been subsumed in GST. Which one is the odd one out?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → VAT on alcoholic liquor for human consumption
Central Excise Duty and Service Tax (central taxes) and Octroi (a state tax) have been subsumed in GST. State Governments still levy VAT on alcoholic liquor for human consumption, so it stays outside GST.
NCERT (2026-27): “Box 5.3: GST: One Nation, One Tax, One Market … It has replaced various types of taxes/cesses, levied by the Central and State/UT Governments. Some of the major taxes that were levied by Centre were Central Excise Duty, Service Tax, Central Sales Tax, Cesses like KKC and SBC. The major State taxes were VAT/Sales Tax, Entry Tax, Luxury Tax, Octroi, Entertainment Tax, Taxes on Advertisements, Taxes on Lottery /Betting/ Gambling, State Cesses on goods etc. These have been subsumed in GST. Five petroleum products have been kept out of GST for the time being but with passage of time, they will get subsumed in GST. State Governments will continue to levy VAT on alcoholic liquor for human consumption. …” |