What kind of a tax is GST?

Correct option is A

The correct answer is (a) Indirect Tax.
· GST (Goods and Services Tax) is an Indirect Tax imposed on the supply of goods and services.
· It is a comprehensive, multi-stage, destination-based tax that has subsumed many indirect taxes previously levied by the central and state governments in India, such as excise duty, service tax, and VAT.
· GST is levied at every step of the production process but is refunded to all parties in the production chain other than the final consumer.
· It is designed to be a single, unified tax, creating a common national market by removing tax barriers between states.
· The GST system aims to make tax administration simpler and reduce tax evasion by having a transparent and streamlined process.
Information Booster:
· Value Added Tax (VAT): While GST is similar to VAT in that it is levied on the value added at each stage of production, GST is broader and more unified .
· Income Tax: This is a direct tax imposed on the income of individuals or entities .
· Direct Tax: Direct taxes are those paid directly by the taxpayer to the government, such as income tax, property tax, etc. GST, being an indirect tax, is collected by businesses and then paid to the government.