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Which statement best explains GST?

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Question ID #26426 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium

Which statement best explains GST?

Correct Answer: B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
GST: Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism

Question: Which statement best explains GST?

A. Index measuring changes in retail prices of a basket of consumer goods and services

B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism

C. Part of balance of payments covering trade in goods and services, income and current transfers

D. Transfer of ownership or control from public sector to private sector

Correct Answer: B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanismGST: Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism

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Which statement best explains GST? - MCQ Explanation

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Correct answer: B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism