Question

State with reason whether you agree or disagree with the following statement:

The goods and services tax (GST) has replaced almost all indirect taxes in India.

Options

• Agree

• Disagree

Answer 1

I agree with the above statement.

Reason:

1. Indirect tax is levied on goods or services.
2. It is paid at the time of production or sale and purchase of commodity/service.
3. Before GST was introduced, there were various indirect taxes like service tax, value-added tax (VAT), excise, etc.
4. GST is a comprehensive tax introduced with the objective of unifying all indirect taxes levied at different stages of production.
5. Hence, GST has replaced almost all indirect taxes in India.