CBSE 2021 Class 12 Economics Term 1 Paper

Question : 16

Total: 60

From the following statements regarding Goods and Services Tax (GST), identify the incorrect statement:

It ensures uniformity of tax rates across all states.
It ensures better tax compliance and tax collection.
All types of direct and indirect taxes have been subsumed by it.
It's imposed on the supply of goods and services.

Solution:

(c) All types of direct and indirect taxes have been subsumed by it.
Explanation: GST has not subsumed direct and indirect taxes because GST is uniform indirect tax which has replaced many indirect taxes in India such as VAT, Excise Duty etc.

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