Which of the following is an Indirect Tax?

Question

Question

This question was previously asked in

MPSC Subordinate Services Mains 2021 (STI) Official Paper-II (Held On: 24 Jul 2022)

Answer 1

The correct answer is GST.

Key Points

Parameter	Direct tax	Indirect tax
Tax Imposition	This tax is directly the taxpayer’s income.	This tax on taxpayers for the goods and services availed or purchased.
Payment course	This tax is directly paid to the government.	This tax is indirectly paid to the government through an intermediary.
Paying Entity	These taxes are paid by individuals and businesses.	These taxes are paid by end-consumers.
Rate of Payment	The rate of tax is decided by the government based on profit and income.	Tax rates are the same for everyone.
Transferability of tax	This type of tax is non-transferable.	This type of tax is transferable.
Nature of Tax	This is a progressive type of tax. This tax rate increases with an individual’s profit and income.	This is a regressive type of tax, which means the tax rate is not affected by the individual's income.
Types of tax	Income tax, wealth tax, corporate tax, Property Tax etc.	Sales tax, service tax, value-added tax, GST etc.
Tax Collection	Collecting this type of tax is difficult.	Tax collection is relatively easier.