Economics • Indian EconomyEasy
Which of the following taxes was subsumed under the Goods and Services Tax (GST) regime in India?
A. Basic customs duty on imported electronics
B. Central excise duty and state value added tax (VAT)✓ Correct Answer
C. Corporate income tax
D. Agricultural income tax levied by state governments
💡 Solution & Explanation
The Goods and Services Tax successfully subsumed multiple cascading indirect taxes levied by the Centre and States, including central excise duty, service tax, and state value added tax. Direct taxes such as corporate income tax and basic customs duties remain outside its unified structure. This tax reform remains a staple topic for fiscal policy questions.
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