The correct option is VAT. Explanation & Key Takeaways: • VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. • VAT was introduced on April 1, 2005, in the country. • VAT is an Indirect tax. • Indirect taxes are those taxes that can be transferred on others by the taxpayers • Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. • GST has replaced many indirect tax laws that previously existed in India. Tax subsumed under the GST: +--------------+----------------------------------------------------------------------------------------------------------------------------------+ | Centre level | Sales Tax Entertainment Tax Central Sales Tax Octroi and Entry Tax Purchase Tax Luxury Tax Taxes on lottery gambling and betting | +--------------+----------------------------------------------------------------------------------------------------------------------------------+ | State-level | State excise duty Additional excise duty Service tax Countervailing duty Special additional custom duties | +--------------+----------------------------------------------------------------------------------------------------------------------------------+