Question

GST is best described as which kind of tax?

Options

• A tax levied only on the final consumer at the point of production

• A direct tax on the income of the manufacturer

• A tax charged only on inter-state sales of goods

• An indirect tax on the supply of goods and services

Answer 1

GST is an indirect tax on the supply of goods and services. It is collected at each stage of the trading chain and finally borne by the consumer.