Goods and Services Tax likely to be levied in India is not a
[amp_mcq option1=”gross value tax” option2=”value-added tax” option3=”consumption tax” option4=”destination-based tax” correct=”option1″]
This question was previously asked in
UPSC CDS-1 – 2017
– A Value-Added Tax (VAT): Taxes only the value addition at each stage.
– A Consumption Tax: Levied on the consumption of goods and services.
– A Destination-Based Tax: The tax accrues to the state where the consumption takes place.
A ‘gross value tax’ would imply a tax levied on the total turnover or sale value without allowing for input tax credits, which is not how GST functions.