Correct option is C
Given:
Statement:
Should all the indirect taxes in India be combined into a single Goods and Services Tax (GST)?
Should all the indirect taxes in India be combined into a single Goods and Services Tax (GST)?
According to given information;
Arguments:
I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
This argument is valid because combining all indirect taxes into a single Goods and Services Tax (GST) would indeed simplify the tax structure. A unified tax system reduces complexity, improves compliance, and decreases administrative costs. It is a logical and strong argument in favor of GST.
II. Yes. The manufacturers and traders will be benefited by this, which in turn will boost tax collection.
II. Yes. The manufacturers and traders will be benefited by this, which in turn will boost tax collection.
This argument is valid because benefiting manufacturers and traders is important for economic growth - a simpler tax system reduces compliance burdens.
Increased compliance could logically lead to higher tax revenues - when the system is easier to follow, more businesses comply properly.
III. No. No other country has adopted such a system.
Increased compliance could logically lead to higher tax revenues - when the system is easier to follow, more businesses comply properly.
III. No. No other country has adopted such a system.
This is a weak argument. The decision to adopt GST should be based on its potential benefits and applicability to India’s needs, rather than being influenced by what other countries have or have not implemented.
So, Only arguments I and II are strong.
Thus. the correct answer is (c).
English
100 Questions
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