India's history of indirect taxes began with state-level sales taxes on goods and a few services, as well as national level excises on manufacturing, reflecting the constitution's tax assignment. Both experienced rate cascading and dispersion. Input tax credit (ITC), known as modified VAT by the central government (centre), was permitted in its excise structure in 1985–1986 but not completely (MODVAT). Three services—insurance, telecommunications, and stockbroking—were each subject to a 5% tax beginning in 1994. Gradually, additional services came under taxation, and by 2017, the rate had risen to 15%. The constitution makes no reference of the category of services; instead, the centre taxed services under a designated category called "residual." States began imposing their own sales taxes on goods in 2005, with the federal government giving a three-year financial subsidy. With minimal exemptions, the state VAT reduced the number of rates while maintaining a single VAT base throughout all states.