The question asks about the fundamental nature of Goods and Services Tax (GST). To answer this, one must understand how GST is calculated and applied throughout the supply chain, particularly its mechanism of input tax credit.
D) Value addition at each stage of the supply chain — GST is designed to be a tax on value addition. Through the input tax credit (ITC) mechanism, businesses can offset the tax paid on their inputs against the tax collected on their outputs. This ensures that the tax is effectively levied only on the incremental value added at each stage of production and distribution, preventing a cascading effect of taxes.
The question asks about the ultimate bearer of the Goods and Services Tax (GST). To answer this, one needs to understand the nature of indirect taxes like GST and how they are passed on through the supply chain.
Correct Option: C) The final consumer
The question asks for the popular slogan associated with the Goods and Services Tax (GST) in India. This requires knowledge of common phrases and initiatives related to major government policies.
The slogan "One Nation, One Tax, One Market" perfectly encapsulates the core philosophy and objective of the Goods and Services Tax (GST) in India. Before GST, India had a complex web of central and state indirect taxes, leading to fragmentation of the national market. GST aimed to replace these multiple taxes with a single, unified tax, thereby creating a common national market and simplifying the tax structure. This slogan was widely used by the Indian government to promote and explain the GST regime.
The question asks to identify the Constitutional Amendment Act responsible for the introduction of Goods and Services Tax (GST) in India. This requires knowledge of significant constitutional amendments and their purposes.
Correct Option: A) 101st Amendment. The 101st Constitutional Amendment Act, 2016, paved the way for the introduction of the Goods and Services Tax (GST) in India. It received presidential assent on September 8, 2016, and came into effect on July 1, 2017.
The question asks for the effective date of the Constitution (101st Amendment) Act, which introduced the Goods and Services Tax (GST) in India. To answer this, one needs to recall the specific date when this landmark amendment came into force.
A) 16 September 2016 — This is the date when the Constitution (101st Amendment) Act, 2016, formally came into effect, bringing into force the constitutional provisions for GST.
The question asks to identify the specific Article inserted into the Indian Constitution to grant powers for making laws related to Goods and Services Tax (GST). This requires knowledge of the constitutional amendments related to GST.
Correct Option: A) Article 246A was specifically inserted into the Constitution by the 101st Amendment Act, 2016, to empower Parliament and State Legislatures to make laws with respect to Goods and Services Tax.