Which country was the first in the world to introduce a value added tax of the kind GST is based on?
- A.Canada
- B.France
- C.Germany
- D.Japan
Correct answer
Explanation
The correct answer is B, France. France adopted the value added tax in 1954, and the idea of taxing only the value added at each stage, with credit for the tax paid earlier, spread from there to most of the world. This is the single most asked international fact from the GST chapter.
Option A, Canada, is important for a different reason: India borrowed the dual model of GST, with a central and a state component levied on the same supply, from the Canadian system, so Canada is the country to remember for the model rather than for being first. Option C, Germany, adopted a value added tax later, in the nineteen sixties, as did most of western Europe. Option D, Japan, introduced its consumption tax only in 1989. Remember the pair: first in France, dual model from Canada.
Read the full article: Taxation in India and GST: Types, Articles and PYQs
Practice Questions
View allWhich of the following is an Indirect Tax in India?
- A.Goods and Services Tax
- B.Corporation Tax
- C.Income Tax
- D.Capital Gains Tax
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GST is charged on the supply of goods and services, and although the registered supplier deposits it with the government, the amount is recovered from the buyer in the price.
Read the full explanation →Which among the following taxes is NOT imposed on goods and services?
- A.Sales tax
- B.Gift tax
- C.Luxury tax
- D.Sin tax
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A gift tax is charged on the transfer of money or property from one person to another without consideration; it is a tax on a transfer between persons, not on any sale of goods or supply of services.
Read the full explanation →Which article of the Constitution provides that no tax shall be levied or collected except by authority of law?
- A.Article 246A
- B.Article 265
- C.Article 279A
- D.Article 280
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It is the foundation of the whole tax system, because it means the executive cannot demand money from a citizen without a law passed by the competent legislature.
Read the full explanation →The Goods and Services Tax came into force in India on
- A.1 April 2016
- B.1 July 2017
- C.1 April 2017
- D.1 January 2018
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GST was rolled out at a midnight session of Parliament and the date is now observed every year as GST Day.
Read the full explanation →GST was introduced in India through which Constitutional Amendment Act?
- A.One Hundred and First Amendment Act, 2016
- B.One Hundred and Second Amendment Act, 2018
- C.Hundred and Twenty-second Amendment Act, 2016
- D.Ninety-seventh Amendment Act, 2011
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It inserted Article 246A, Article 269A and Article 279A and made the sharing of taxing power between the Union and the states possible, so that both could tax the same supply.
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