Question

Which of the following taxes has NOT been subsumed by Goods and Services Tax (GST)?
1. Central Sales Tax
2. Securities Transaction Tax
3. Luxury Tax
4. Entry Tax

Answer 1

Correct Answer - Option 2 : Securities Transaction Tax

The correct answer is Securities Transaction Tax.

• Securities Transaction Tax has not been subsumed by Goods and Services tax.
  • It is a tax levied at the time of purchase and sale of securities listed on stock exchanges in India.
  • Securities are tradable investment instruments such as shares, bonds, debentures, equity-oriented mutual funds (MFs).
  • This tax was introduced in the 2004 Union Budget and came into effect from 1 October 2004.
  • The rate of STT differs based on the type of security traded and whether the transaction is a purchase or a sale.

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• Goods and Services Tax (GST) is an indirect tax which has been implemented in India on 1 July 2017.
• The main objective behind the implementation of this tax is to make a uniform tax system in the country.
• The Goods and Services Tax (GST) was first implemented in France.
• The first state which implemented the GST was Assam.
• GST has been implemented by the 101st Constitution Amendment Act, 2016.
• The GST was the 122^nd constitutional amendment bill to be introduced in the Parliament of India.