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UPSC 2017: 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.
(a)1 only
(b)2 and 3 only
(c)1 and 3 only
(d)1, 2 and 3
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Not attemptedCorrect Answer: (a) 1 only
Statement 1 is correct: GST replaces a plethora of central and state indirect taxes (VAT, excise, service tax, octroi, etc.), creating a unified national market. Statements 2 and 3 are exaggerated—GST by itself neither ‘eliminates’ the fiscal deficit nor guarantees dramatic jumps in forex reserves, nor can it alone propel India past China in the near future. Therefore only statement 1 is valid. ([licchavilyceum.com](https://licchavilyceum.com/upsc-prelims-2017-question-paper-fully-solved/?utm_source=openai))
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What is the correct answer to this UPSC 2017 Indian Economy question?▼
The correct answer is option (a): 1 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Taxation question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2017, GS Paper 1, as Question 81. It falls under Indian Economy > Taxation.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Taxation?▼
UPSC has asked 19 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.