GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raise prices of Foreign goods
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Raise prices of luxury goods
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Lower prices of goods of everyday use
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Avoid repeated payment of duty from the raw materials stage to the final product and thus reduce
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Detailed explanation-1: -The correct answer is to Avoid repeated payment of tax from the raw materials stage to the final product and thus reduce the burden of tax on the final product. The Goods and Services Tax ( GST) is a consolidated, multi-level, destination-based tax that is applicable on every value addition.
Detailed explanation-2: -The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax. The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs.
Detailed explanation-3: -VAT is levied on the gross margin at each point in the process of manufacturing, distributing, and selling an item. The tax is assessed and collected at each stage. That is different from a sales tax system, in which the tax is assessed and paid only by the consumer at the very end of the supply chain.
Detailed explanation-4: -standard rate. reduced rate. second reduced rate. zero rate. livestock rate. 04-Oct-2022