Which of the following is an Indirect Tax in India?
- A.Goods and Services Tax
- B.Corporation Tax
- C.Income Tax
- D.Capital Gains Tax
Correct answer
Explanation
The correct answer is A, Goods and Services Tax. 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. Since the burden is shifted to someone other than the person who pays it in, GST is an indirect tax.
Option B, corporation tax, is a direct tax on the profits of a company, and the company cannot pass the liability on to anyone else. Option C, income tax, is the classic direct tax, levied under the Income-tax Act of 1961 on the income of individuals and other assessees according to their ability to pay. Option D, capital gains tax, is charged on the profit made when a capital asset such as land, a building or a share is sold, and is again borne by the seller who earned the gain. All three are administered by the Central Board of Direct Taxes, while GST falls under the Central Board of Indirect Taxes and Customs.
Read the full article: Taxation in India and GST: Types, Articles and PYQs
Practice Questions
View allWhich 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.
Read the full explanation →The GST Council is constituted under which article of the Constitution?
- A.Article 269A
- B.Article 279A
- C.Article 246A
- D.Article 268
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Under it the President constitutes the GST Council, which is chaired by the Union Finance Minister and includes the Union Minister of State for Finance and a minister nominated by each state.
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