Consider the following statements about Goods and Services Tax (GST):

  1. GST is one indirect tax which replaces several indirect taxes in India
  2. For inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST)

Which of the above statements is/are correct?

Answer: [C] Both 1 & 2

First statement is correct because GST is one indirect tax for the whole nation, which will make India one unified common market. Second statement is also correct because in case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST.

This question is a part of GKToday's Integrated IAS General Studies Module