Question

Which of the following benefits will result from GST implementation?
1. Increase in cascading effect of indirect taxes.
2. Widening of tax base.
3. Uniform taxation across the country.
Select the correct option using the codes given below.

• A. 1 and 2
• B. 2 and 3
• C. 1 and 3
• D. 1, 2 and 3

Answer 1

The correct option is B 2 and 3

GST, an Indirect Tax is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Its implementation has many positive implications for the economy, such as uniform taxation, removal of cascading effect on indirect taxes, the system of input tax credit, widening the tax base, greater formalization, increasing financial inclusion, making supply chain and logistics efficient.