Economics • Indian EconomyEasy
What does the 'Goods and Services Tax (GST)' implemented in India represent?
A. A direct progressive tax levied on individual income and corporate profits
B. A comprehensive indirect multi-stage, destination-based tax levied on the supply of goods and services✓ Correct Answer
C. A customs duty collected exclusively on export items
D. A surcharge levied by state governments on agricultural land transactions
💡 Solution & Explanation
The Goods and Services Tax operates as a comprehensive indirect multi-stage, destination-based tax levied on the domestic supply of goods and services throughout India. Unlike direct taxes such as income tax, it subsumes numerous indirect levies previously imposed by central and state governments. This reform unified the national market under a single tax regime.
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