THE evolution of GST in India has taken interesting turns during recent years. On November 19, 2007, the joint working group on goods and services tax recommended not only the replacing of the existing CenVAT and service tax levied by the central government and the state-VAT levied by the state governments, but also suggested subsuming of all the indirect taxes on supply of goods/services by the centre and the states. It has recommended that the three important state taxes—state excise duty, entertainment tax and electricity duty—should also be subsumed in the GST. This would have taken away three important state taxes from the purview of the states.
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