Before understanding which taxes have been replaced by the GST in India, let us first understand the taxation system in India. The Indian taxation system is classified into two parts namely Direct Taxes & Indirect Taxes.
Direct tax is collected by Central Government. Whereas Indirect Tax used to be collected by the Central and State government & local bodies. For Instance, Entry Tax and VAT were charged by State Government but along with this Central Government. Other taxes like Property Tax, Water Tax, Toll Tax etc. were levied by the Local Bodies.
For better enforcement, tax payment and ease of compliance government subsumed a large number of Indirect Taxes in GST. But Many of us think that with the commencement of GST in the nation, all the previous taxes have been replaced. On the other hand, there are still some taxes that are still charged independently. That is described as follows-
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Union Budget 2021 - Updates, Highlights & Analysis