The correct answer is: b) Goods and Services Tax (GST).
Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a comprehensive, multi-stage, destination-based tax that subsumes most of the indirect taxes levied by the central and state governments. GST was introduced in India on July 1, 2017.
Arunachal Pradesh, along with most Indian states, has adopted GST. The state government of Arunachal Pradesh has notified the Arunachal Pradesh Goods and Services Tax Act, 2017, which came into effect on July 1, 2017.
The following are the main features of GST:
- It is a destination-based tax, which means that the tax is levied at the place of consumption of goods and services.
- It is a multi-stage tax, which means that the tax is levied at each stage of the supply chain, from the manufacturer to the final consumer.
- It is a comprehensive tax, which means that it subsumes most of the indirect taxes levied by the central and state governments.
- It is a uniform tax, which means that the rate of tax is the same across the country.
- It is a technology-driven tax, which means that it is based on a robust IT infrastructure.
GST is a major reform in the indirect tax system in India. It is expected to simplify the tax system, reduce the cost of doing business, and boost economic growth.
The other options are incorrect because:
- Value Added Tax (VAT) is an indirect tax levied on the value added at each stage of the supply chain. It is a state-level tax and is not applicable in all states.
- Central Sales Tax (CST) is an indirect tax levied on the sale of goods from one state to another. It is a central government tax and is not applicable in all states.
- Excise Duty is an indirect tax levied on the manufacture of goods. It is a central government tax and is applicable on all goods manufactured in India.