Finance · Indirect Taxes
The most significant characteristic that differentiates Goods and Services Tax (GST) from the earlier regime of Indirect Taxes in India is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1GST is solely a Central Government tax, subsuming all State-level taxes.
- 2GST is a destination-based consumption tax ensuring seamless Input Tax Credit (ITC) across the value chain, minimizing the cascading effect.✓
- 3GST has a lower overall tax rate than the previous taxes.
- 4GST is levied and collected at the point of origin.
Correct answer
GST is a destination-based consumption tax ensuring seamless Input Tax Credit (ITC) across the value chain, minimizing the cascading effect.
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