{"id":84722,"date":"2025-06-01T02:47:13","date_gmt":"2025-06-01T02:47:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=84722"},"modified":"2025-06-01T02:47:13","modified_gmt":"2025-06-01T02:47:13","slug":"goods-and-services-tax-likely-to-be-levied-in-india-is-not-a","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/goods-and-services-tax-likely-to-be-levied-in-india-is-not-a\/","title":{"rendered":"Goods and Services Tax likely to be levied in India is not a"},"content":{"rendered":"

Goods and Services Tax likely to be levied in India is not<\/b> a<\/p>\n

[amp_mcq option1=”gross value tax” option2=”value-added tax” option3=”consumption tax” option4=”destination-based tax” correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2017<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nGoods and Services Tax (GST) levied in India is not a gross value tax.
\n<\/section>\n
\nGST is a Value-Added Tax (VAT). It is levied at each stage of the supply chain but the tax burden is ultimately borne by the final consumer. Businesses can claim Input Tax Credit (ITC) for the GST paid on inputs, ensuring that tax is levied only on the ‘value added’ at each stage, not on the total (gross) value.
\n<\/section>\n
\nGST is correctly described as:
\n– A Value-Added Tax (VAT): Taxes only the value addition at each stage.
\n– A Consumption Tax: Levied on the consumption of goods and services.
\n– A Destination-Based Tax: The tax accrues to the state where the consumption takes place.
\nA ‘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.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 Download PDFAttempt Online Goods and Services Tax (GST) levied in India is not a gross value tax. GST is a Value-Added … <\/p>\n

Detailed SolutionGoods and Services Tax likely to be levied in India is not a<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1101,1112],"class_list":["post-84722","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1101","tag-economic-and-social-development","no-featured-image-padding"],"yoast_head":"\nGoods and Services Tax likely to be levied in India is not a<\/title>\n<meta name=\"description\" content=\"Goods and Services Tax (GST) levied in India is not a gross value tax. GST is a Value-Added Tax (VAT). It is levied at each stage of the supply chain but the tax burden is ultimately borne by the final consumer. 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