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Railways PYQCBT 2 2017

RRB NTPC · Question 89

Which of the following is NOT true in regard to Goods and Services Tax (GST)?

  1. It will replace luxury tax

  2. It is a direct tax

  3. It will replace multiple taxes on a product or service

  4. It is an indirect tax

Show answer & explanation

Answer: (B) It is a direct tax

Explanation

GST is an indirect tax on the supply of goods and services. It replaced many indirect taxes such as excise, VAT, service tax and luxury tax. Calling it a direct tax is not true.