Question

Which of the following is the main motive of the government behind the introduction of the Goods and Services Tax
A) To bring tax uniformity in the country
B) To increase government revenue
C) To replace all the indirect tax
D) All of the above

Answer 1

Explanation:

The main motive of GST is to reduce the cascading effect of tax on the cost of goods and services and create a common, cooperative and undivided Indian market to make economy stronger and powerful.

HOPE IT WILL HELP YOU.

PLEASE MARK ME AS BRAINLIEST.

THANKS.

Answer 2

The main motive of the government behind the introduction of the Goods and Services Tax is to replace all the indirect taxes. (option c)

Goods and services tax (GST):

• It removes all other events of indirect taxes (*except Customs) and combines them into one single event– the sale of a Good or a service.
• Whenever a good is sold from one person to another, GST is levied, which is simply the VAT of the old system, i.e., the sales tax levied in a Value-added manner. There is no other tax like the excise duty, central sales tax or entry/octroi, etc. A produces and sells a good to B, only GST is paid.
• GST has been defined as any tax on the supply of goods and services other than on alcohol for human consumption.

It has three important properties:

1. It has a one-nation-one tax structure: This means that indirect taxes like VAT, CST, Excise, Service tax, etc. will subsume.
2. It is a destination-based tax: This means th place where goods are supplied is the taxing authority and not where the sale originates.
3. It has a VAT-like structure: This means that taxes paid at previous stages will be available as set off at the subsequent stage.