WBCS.LIVE practice question

What is the main objective of the 'Goods and Services Tax' (GST) introduced in India?

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

Answer options

  1. To increase direct tax collection
  2. To reduce corporate tax rates
  3. To control inflation directly
  4. To simplify the indirect tax structure

Correct answer and explanation

Correct answer: To simplify the indirect tax structure

Explanation: āœ… Correct Answer: D) To simplify the indirect tax structure šŸ“š Explanation: GST was introduced on July 1, 2017, to replace a multitude of indirect taxes like excise duty, VAT, and service tax. It follows the principle of "One Nation, One Tax" to create a unified national market. By removing the cascading effect of taxes, it aims to reduce the overall tax burden on goods and services.