Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:
Which of the following is the feature of "Goods and Services Tax Act, 2016"?
Options:
It was introduced to increase the revenue of government
To reduce tax evasion in the country
To create one nation, one tax and one market
All of the above
Correct Answer:
All of the above
Explanation:
The new taxation system was expected to generate additional revenue for the government, reduce tax evasion and create ‘one nation, one tax and one market’. Another component of reform in this area was simplification. In order to encourage better compliance on the part of taxpayers, it reduced the complexity and the rates were also substantially lowered.