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Problem 6 - Entrance Test

Which of the following is a key feature of the 'Goods and Services Tax (GST)' in India?

A. It is a direct tax levied on individuals and businessesB. It is an indirect tax levied on the supply of goods and servicesC. It is a tax levied on the export of goods and servicesD. It is a tax levied on the import of goods and services

Correct: B

The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a destination-based tax that aims to reduce the complexity of the tax system, increase tax compliance, and promote economic growth. The GST also aims to reduce the cascading effect of taxes and promote a more efficient tax system.