Simplifying the indirect tax system
Reducing tax revenue for the state
Increasing compliance costs for small businesses
All of the above
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Answer is Wrong!
The correct answer is: d) All of the above
The implementation of the Goods and Services Tax (GST) in India impacted Manipur by:
- Simplifying the indirect tax system. The GST is a single, unified tax that replaced a number of different indirect taxes, such as the Value Added Tax (VAT), Central Sales Tax (CST), and Excise Duty. This simplification has made it easier for businesses to comply with tax laws and has reduced the cost of doing business.
- Reducing tax revenue for the state. The GST is a destination-based tax, which means that it is levied on the value added at each stage of production and distribution, and is collected by the state where the final product is consumed. This has led to a loss of tax revenue for states like Manipur, which are located at the beginning of the supply chain.
- Increasing compliance costs for small businesses. The GST is a complex tax, and small businesses may find it difficult to comply with the new rules and regulations. This has led to an increase in compliance costs for small businesses.
Overall, the implementation of the GST has had a mixed impact on Manipur. While it has simplified the indirect tax system and reduced the cost of doing business, it has also led to a loss of tax revenue for the state and increased compliance costs for small businesses.