Question

Identify the objective(s) of implementing GST.

• A. Reducing economic distortions
• B. Consumption based tax instead of Manufacturing
• C. Subsume all indirect taxes at Centre and State Level under
• D. All of the above

Answer 1

The correct option is D All of the above

Objectives of implementing GST are:

• One Country – One Tax
  
• Consumption based tax instead of Manufacturing
  
• Uniform GST Registration, payment and Input tax Credit
  
• To eliminate the cascading effect of Indirect taxes on single transaction
  
• Subsume all indirect taxes at Centre and State Level under
  
• Reduce tax evasion and corruption
  
• Increase productivity
  
• Increase Tax to GDP Ratio and revenue surplus
  
• Increase Compliance
  
• Reducing economic distortions