GST is described as ‘One Nation, One Tax, One Market’. Which feature of GST does this title reflect?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → It is applicable throughout the country with one rate for one type of goods or service
“One Nation, One Tax” means the same tax across the country: one type of good or service carries one rate everywhere. Different goods can still have different rates.
Option (1) It has replaced all the direct taxes levied by the Centre and the states — Incorrect. GST is an indirect tax. It replaced taxes on goods and services.
Option (2) It charges one single rate of tax on all goods and services in the country — Incorrect. GST has six standard rates, from 0% to 28%.
Option (3) It is collected only by the central government and not by the states — Incorrect. There are central and state GST laws (CGST and SGST).
Option (4) It is applicable throughout the country with one rate for one type of goods or service — Correct. The same good carries the same rate in every state.
NCERT (2026-27): “Box 5.3: GST: One Nation, One Tax, One Market Goods and Service Tax (GST) is the single comprehensive indirect tax, operational from 1 July 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. …” “… Under GST, there are 6 (six) standard rates applied i.e. 0%, 3%,5%, 12%,18% and 28% on supply of all goods and/or services across the country. …” “… Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. …” |