Skip to main contentSkip to solution

Comprehension:

Read the passage carefully and answer the questions based on the passage:

GST: One Nation, One Tax, One Market

Goods and Service Tax (GST) is the single comprehensive indirect tax, operational from 2017, on supply of goods and services, right from the manufacturer/service provider to the consumer. It is a destination based consumption tax with facility of Input Tax Credit in the supply chain. It is applicable throughout the country with one rate for one type of goods/service. It has amalgamated a large number of Central and State taxes and cesses. It has replaced large number of taxes on goods and services levied on production/sale of goods or provision of service. Under GST, the tax is discharged at every stage of supply and the credit of tax paid at the previous stage is available for set off at the next stage of supply of goods and/or services. It has replaced various types of taxes/cesses, levied by the Central and State/UT Governments. Under GST, there are six standard rates applied on supply of all goods and/or services across the country. The 101th Constitution Amendment Act introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. GST has simplified the multiplicity of taxes, facilitated freedom of movement, created a common market in the country, standardized laws, procedures and rates of taxes across the country, aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets.

The month in which the Goods and Services Tax became operational.

Solution

✅ Correct Option: 3

Option 1 -> May - GST was not launched in this month.

Option 2 -> June - Final preparations were underway, but GST had not yet been implemented.

Option 3 -> July - GST became operational on July 1, 2017.

Option 4 -> August - GST was already operational by this month.


Hence, Option 3: July -> The Goods and Services Tax (GST) was officially launched at midnight on July 1, 2017, in India. This historic tax reform replaced multiple indirect taxes like VAT, service tax, excise duty, and others with a unified taxation system. The launch event took place in the Central Hall of Parliament with the President and Prime Minister in attendance, marking it as one of the most significant economic reforms in India's post-independence history. -> correct

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question