What principles were adopted for subsuming the above taxes under GST?

The various Central, State and Local levies were examined to identify their possibility of being subsumed
under GST. While identifying, the following principles were kept in mind:

  1. Taxes or levies to be subsumed should be primarily in
    the nature of indirect taxes, either on the supply of goods
    or on the supply of services.
  2. Taxes or levies to be subsumed should be part of
    the transaction chain which commences with import/
    manufacture/ production of goods or provision of services
    at one end and the consumption of goods and services at
    the other.
  3. The subsumation should result in free flow of tax
    credit in intra and inter-State levels. The taxes, levies and
    fees that are not specifically related to supply of goods &
    services should not be subsumed under GST
  4. Revenue fairness for both the Union and the States
    individually would need to be attempted.