WBCS.LIVE practice question

Which of the following is a classic example of an indirect tax in India?

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

Answer options

  1. Income Tax
  2. Corporation Tax
  3. Wealth Tax
  4. Goods and Services Tax (GST)

Correct answer and explanation

Correct answer: Goods and Services Tax (GST)

Explanation: āœ… Correct Answer: D) Goods and Services Tax (GST) šŸ“š Explanation: An indirect tax is a tax levied on goods and services rather than on an individual's income or corporate profits. The burden of an indirect tax can be seamlessly passed on from the seller to the final consumer. The Goods and Services Tax (GST) is the most prominent example of a comprehensive, multi-stage indirect tax currently operating in India.