Correct option is A
The Correct Answer Is: (A) Indirect Tax
Explanation (English):
Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It was introduced on 1st July 2017, replacing multiple indirect taxes such as Excise Duty, VAT, Service Tax, and Entertainment Tax.
GST is a destination-based tax, meaning it is collected at the place of consumption rather than the place of production. It is divided into:
- CGST (Central GST): Collected by the Central Government.
- SGST (State GST): Collected by State Governments.
- IGST (Integrated GST): Collected on inter-state transactions.
Information Booster:
GST hassimplified the tax structure, reduced tax evasion, and created aunified national market.
GST follows the one nation, one tax principle and eliminates the cascading effect of multiple taxes. It has helped increase tax compliance and improve ease of doing business in India.
Additional Knowledge:
- Gold Tax: GST is applicable on gold at 3% and an additional 5% on making charges.
- Travel Tax: Some countries impose a tax on travelers, GST applies to flight tickets, hotels, and tourism services at different rates.
- Direct Tax: Includes taxes like Income Tax and Corporate Tax, which are paid directly by individuals or organizations to the government.
English
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