The correct answer is: B) Indirect Tax System.
An indirect tax is a tax that is levied on goods and services, and is ultimately paid by the consumer. The seller of the goods or services is responsible for collecting the tax from the consumer and remitting it to the government.
The Goods and Services Tax (GST) is an indirect tax that was introduced in India in 2017. It is a comprehensive indirect tax that subsumes all central and state indirect taxes, including excise duty, service tax, value-added tax (VAT), and central sales tax.
The GST is a destination-based tax, which means that the tax is levied at the place where the goods or services are consumed. This is in contrast to an origin-based tax, which is levied at the place where the goods or services are produced.
The GST is a multi-stage tax, which means that it is levied at each stage of the supply chain, from the manufacturer to the retailer to the consumer. The GST rate is applied to the value of the goods or services at each stage of the supply chain.
The GST is a self-assessment tax, which means that the taxpayer is responsible for determining the tax liability and remitting the tax to the government. The taxpayer is required to file a return with the government on a monthly or quarterly basis.
The GST is a harmonized tax, which means that the tax rate and rules are uniform across the country. This is in contrast to the previous indirect tax regime, which was characterized by a multiplicity of taxes with different rates and rules across different states.
The GST is a major reform in the indirect tax system in India. It is expected to simplify the tax system, reduce compliance costs, and improve efficiency in the economy.
The other options are:
A) Direct Tax System: A direct tax is a tax that is levied on the income or wealth of an individual or entity. The taxpayer is directly liable to pay the tax to the government.
C) Proportional Tax System: A proportional tax is a tax in which the tax rate is the same for all taxpayers, regardless of their income or wealth.
D) Regressive Tax System: A regressive tax is a tax in which the tax rate is lower for high-income taxpayers than for low-income taxpayers.