Simplify the tax system
Reduce tax evasion
Broaden the tax base
All of the above
Answer is Wrong!
Answer is Right!
The correct answer is D. All of the above.
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It was introduced on July 1, 2017, and replaced a number of indirect taxes, including the Central Value Added Tax (CENVAT), the State Value Added Tax (VAT), and the Service Tax.
The introduction of GST aimed to simplify the tax system, reduce tax evasion, and broaden the tax base.
- Simplifying the tax system: GST is a single tax that is levied on the supply of goods and services at all stages of the value chain. This simplifies the tax system for businesses and taxpayers.
- Reducing tax evasion: GST is a destination-based tax, which means that the tax is levied at the place of consumption. This makes it difficult for businesses to evade taxes by shifting their sales to other states.
- Broadening the tax base: GST is a consumption-based tax, which means that it is levied on the value of goods and services consumed in India. This broadens the tax base and increases the revenue collected by the government.
In addition to these objectives, the introduction of GST also aimed to improve compliance, promote ease of doing business, and boost economic growth.