GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following tax will be abolished by the Goods and Services Tax
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Property tax
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Corporation tax
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VAT
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None of the above
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Explanation:
Detailed explanation-1: -The correct answer is Value Added Tax.
Detailed explanation-2: -VAT was introduced to make India a single integrated market so that a unified tax rate for products and services is possible. However, the taxation system had drawbacks due to many indirect taxes. This led to the elimination of the India VAT tax which was replaced with GST from July 2017.
Detailed explanation-3: -India has four GST rate structure-5%, 12%, 18% and 28%. State Tax GST has replaced taxes on advertisements, entertainment & amusement tax and luxury tax, to name a few. Central Taxes GST has replaced central excise duty, service tax and additional duties of excise (goods of special importance), to name a few.
There is 1 question to complete.