Question

GST is ______.

Options

• a direct tax

• an indirect tax

• both a direct tax and an indirect tax

• neither a direct tax nor an indirect tax

Answer 1

GST is an indirect tax.

Explanation:

GST (Goods and Services Tax) is levied on the supply/sale of goods and services and replaces/combines several earlier indirect taxes; it is collected from the buyer but remitted to the government by the supplier, so it is classified as an indirect tax.