Which of the following are true of the Goods and Services Tax (GST) introduced in India in 2017? I. It…
The Goods and Services Tax (GST) in India is a comprehensive, multistage, destination-based consumption tax (I). Because tax revenue accrues to the state where final…
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Which of the following are true of the Goods and Services Tax (GST) introduced in India in 2017?
I. It is a destination-based tax
II. It benefits producing states more
III. It benefits consuming states more
IV. It is a progressive taxation V. It is an umbrella tax to improve ease of doing business
Answer and explanation
Correct answer D
The Goods and Services Tax (GST) in India is a comprehensive, multistage, destination-based consumption tax (I). Because tax revenue accrues to the state where final consumption takes place, it benefits consuming states more than producing states (III), and by subsuming multiple central and state indirect taxes into one unified system, it serves as an umbrella tax that improves the ease of doing business (V).
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UGC NET Commerce