WBCS.LIVE practice question

Which of the following is NOT a 'Direct Tax' in India?

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

Answer options

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

Correct answer and explanation

Correct answer: Goods and Services Tax (GST)

Explanation: āœ… Correct Answer: (C) Goods and Services Tax (GST) šŸ“š Explanation: Direct taxes are those paid directly by individuals or organizations to the government (e.g., Income Tax, Corporate Tax). The burden of these taxes cannot be shifted. GST is an Indirect Tax. It is collected by intermediaries (like retailers) from the consumer who bears the ultimate economic burden. GST replaced multiple indirect taxes like excise duty, VAT, and service tax in 2017.