Economics • Indian EconomyEasy
What is the primary purpose of the Goods and Services Tax (GST) implemented in India?
A. Replacing multiple indirect taxes with a unified destination-based tax system to eliminate cascading tax effects✓ Correct Answer
B. Increasing personal income tax rates for high-income earners
C. Levying custom duties exclusively on agricultural exports
D. Eliminating corporate compliance requirements for multinational corporations
💡 Solution & Explanation
The Goods and Services Tax is a comprehensive indirect tax levied on the supply of goods and services, designed to replace a maze of central and state levies with a single destination-based tax that eliminates tax cascading. Direct taxes like income and corporate taxes are governed separately. Compliance requirements remain structured through digital return filings.
More Economics Indian Economy questions
- Which organization in India compiles and releases the 'Index of Industrial Production (IIP)', and under which…
- What is the primary mandate of the 'Competition Commission of India (CCI)'?
- What is the primary objective of the 'PM-MITRA' (Pradhan Mantri Mega Integrated Textile Region and Apparel)…
- Consider the following statements regarding the SVAMITVA scheme implementation in Haryana: 1. It provides…
- What is the primary objective of the 'Production Linked Incentive (PLI)' scheme across various key sectors in…