The correct answer is: D) Goods and Services Tax (GST)
Goods and Services Tax (GST) is a tax imposed on the manufacture, sale, and consumption of goods and services. It is a value-added tax (VAT), which means that it is levied on the value added to goods and services at each stage of the production and distribution process.
GST is a broad-based tax, which means that it applies to a wide range of goods and services. It is also a destination-based tax, which means that the tax is levied on the final consumption of goods and services, regardless of where they are produced.
GST is a relatively new tax in India. It was introduced in July 2017, and it replaced a number of other indirect taxes, such as excise duty, service tax, and value-added tax (VAT).
GST is a complex tax, and there are a number of different rules and regulations that govern its application. However, it is a key part of the Indian government’s efforts to simplify the tax system and promote economic growth.
Here is a brief explanation of each of the options:
- Income Tax is a tax on the income of individuals and businesses. It is a progressive tax, which means that the tax rate increases as income increases.
- Sales Tax is a tax on the sale of goods and services. It is a consumption tax, which means that it is levied on the final consumption of goods and services.
- Excise Duty is a tax on the manufacture of goods. It is a production tax, which means that it is levied on the value added to goods at the manufacturing stage.
- Goods and Services Tax (GST) is a tax on the manufacture, sale, and consumption of goods and services. It is a value-added tax (VAT), which means that it is levied on the value added to goods and services at each stage of the production and distribution process.