Key Highlights
- GST replaced multiple Central and State indirect taxes with a unified, destination-based tax system under the principle of "One Nation, One Tax."
- GST replaced taxes such as VAT, Excise Duty, Service Tax, Entry Tax and Luxury Tax, simplifying India's indirect tax structure.
- It created a single national market, making interstate movement of goods easier and reducing logistics costs.
- The introduction of Input Tax Credit (ITC) eliminated the cascading effect of taxes, reducing the overall tax burden on businesses.
- Digital initiatives like e-Way Bills and e-Invoicing have improved transparency, tax compliance and ease of doing business.
- GST has expanded the taxpayer base, increased tax collections and strengthened cooperative federalism through the GST Council, which is chaired by the Union Finance Minister
Question:
Q1. The Goods and Services Tax (GST) was introduced through which Constitutional Amendment?
a) 100th Constitutional Amendment Act
b) 101st Constitutional Amendment Act, 2016
c) 102nd Constitutional Amendment Act
d) 103rd Constitutional Amendment Act
Answer: b) GST was introduced through the 101st Constitutional Amendment Act, 2016, paving the way for a unified indirect tax system.
