What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:
- A. 1 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Answer: A
Explanation
GST is one indirect tax for the whole nation, which will make India one unified common market. Hence, statement 1 is correct. There is no information which says GST will drastically reduce the CAD of india. Neither it is true that it will enable India to take over China. Hence, statements 2 and 3 are not correct.