Various central levies such as excise, value added tax and service tax are proposed to be subsumed in the goods and services tax, making it a lot easier for the business and industry.

A discussion paper by the empowered committee of state finance minister released today said taxes levied by the central government like excise, additional excise duty and various surcharges and cesses would be part of the GST.

"It will re-distribute the burden of taxation equitably between manufacturing and services bringing about a qualitative change in the tax system," finance minister Pranab Mukherjee said.

West Bengal finance minister Asim Dasgupta, who heads the empowered committee released the paper.

The GST would also subsume other levies like additional customs duty (also called countervailing duty), excise duty on medicine and toiletries, said the Paper.

Besides the central levies, several taxes currently being levied at different levels will become part of the GST.

These include VAT, sales tax, entertainment tax (except the one levied by the local bodies), luxury tax, taxes on lotteries, betting and gambling and state cesses and surcharges and the entry tax.

Alcohol and petroleum products, however, will not be covered by the GST, though tobacco would attract GST, the Paper added.