The correct answer is: a) Goods and Services Tax (GST)
Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for consumption in India. It is a comprehensive indirect tax that subsumes most of the indirect taxes levied by the central and state governments. GST was introduced in India on July 1, 2017.
The main objective of GST is to create a single market for goods and services in India. It is also expected to improve tax compliance and reduce the cost of doing business.
GST is a destination-based tax, which means that the tax is levied at the place where the goods or services are consumed. The tax is levied on the value of the goods or services, which includes the cost of the goods or services, the cost of transportation, and the cost of insurance.
The GST rate is four-tiered: 5%, 12%, 18%, and 28%. The rate of tax applicable to a particular good or service is determined by the nature of the good or service.
GST is collected by the central government and the state governments. The central government collects the GST on inter-state supplies, while the state governments collect the GST on intra-state supplies.
The GST Council is a body that is responsible for deciding the rates of GST, the rules and regulations governing GST, and the dispute resolution mechanism. The GST Council is chaired by the Union Finance Minister and has representatives from the central government and all the state governments.
GST has been a major reform in the Indian tax system. It has simplified the tax structure, reduced the cost of doing business, and improved tax compliance. GST has also led to a significant increase in tax revenue.
The following are the other options for the question:
- b) Direct taxes (income, corporate) Direct taxes are taxes that are levied on the income of individuals and businesses. The main direct taxes in India are income tax and corporate tax.
- c) Agricultural land tax Agricultural land tax is a tax that is levied on the value of agricultural land. The tax rate is usually based on the annual value of the land.
- d) Wealth tax Wealth tax is a tax that is levied on the net wealth of individuals and businesses. The net wealth is the total value of assets minus the total value of liabilities.
Agricultural land tax and wealth tax are not significant contributors to Meghalaya’s own revenue.