Economy2017
What is/are the most likely advantages of implementing ‘Goods and Services Tax’ (GST)?
- It will replace multiple taxes collected by multiple
- It will drastically reduce the ‘Current Account Deficit’ of
- It will enormously increase the growth and size of the
economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:
Explanation
The correct option is 1 only. Implementing the Goods and Services Tax (GST) in India aims to streamline the tax structure by replacing multiple indirect taxes imposed by various authorities with a single tax, thereby creating a unified market across the country. This simplification enhances compliance, reduces the cascading effect of taxes on goods and services, and promotes ease of doing business, which is crucial for economic integration and growth. While options 2 and 3 suggest broader economic impacts, they are overly optimistic and not directly linked to the fundamental purpose of GST.