WBCS.LIVE practice question

The Goods and Services Tax (GST) is classified as what type of tax?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Direct Tax
  2. Indirect Tax
  3. Wealth Tax
  4. Corporate Tax

Correct answer and explanation

Correct answer: Indirect Tax

Explanation: āœ… Correct Answer: B) Indirect Tax šŸ“š Explanation: GST is a comprehensive, multi-stage, destination-based indirect tax. It replaced a complex web of existing indirect taxes levied by the State and Central governments, such as Excise Duty, VAT, and Service Tax, unifying the Indian market.