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Question
State with reason whether you agree or disagree with the following statement:
The goods and services tax (GST) has replaced almost all indirect taxes in India.
Options
Agree
Disagree
MCQ
True or False
Solution
I agree with the above statement.
Reason:
- Indirect tax is levied on goods or services.
- It is paid at the time of production or sale and purchase of commodity/service.
- Before GST was introduced, there were various indirect taxes like service tax, value-added tax (VAT), excise, etc.
- GST is a comprehensive tax introduced with the objective of unifying all indirect taxes levied at different stages of production.
- Hence, GST has replaced almost all indirect taxes in India.
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RELATED QUESTIONS
Identify the right group of pairs from the given options.
| Column - I | Column - II |
| i) Direct tax | a) Non-tax revenue |
| ii) Indirect tax | b) Inflation |
| iii) Fees and Fines | c) GST |
| iv) Surplus budget | d) Personal income tax |
