SSC Stenographer 2026 PYQ — Question 13

Solution: The correct answer is Introduction of Value Added Tax (VAT) and later the Goods and Services Tax (GST).
Explanation:
☛ Following the 1991 Economic Reforms, structural tax reforms were introduced to modernize India's tax architecture, enhance compliance, eliminate cascading taxes, and widen the tax base.
☛ Value Added Tax (VAT) was progressively implemented at the state level starting from 2005, replacing the old sales tax system and mitigating the double taxation of goods.
☛ The culmination of indirect tax reforms was the rollout of the Goods and Services Tax (GST) on 1 July 2017 under the 101st Constitutional Amendment Act, 2016.
☛ GST subsumed multiple central and state levies (like Excise Duty, Service Tax, VAT, Octroi) into a single unified destination-based tax system, greatly improving tax efficiency across India.
Extra Exam-Relevant Facts:
☛ Chelliah Committee (1991): Recommended comprehensive tax reforms, including lowering tax rates and introducing a value-added tax structure.
☛ Vijay Kelkar Task Force (2002): Strongly recommended replacing the fragmented indirect tax regime with a nationwide Goods and Services Tax.
☛ Nationalization of Banks: Took place in 1969 (14 banks) and 1980 (6 banks), prior to the 1991 economic reforms.
☛ Wealth Tax: Introduced under the Wealth-tax Act, 1957, it was abolished in the Union Budget 2015-16 and replaced with an additional surcharge on high-income earners.
Important One-Liners for Upcoming Exams:
☛ Which Constitutional Amendment introduced the Goods and Services Tax (GST) in India? → 101st Constitutional Amendment Act, 2016
☛ On which date did GST officially come into force in India? → 1 July 2017
☛ Which was the first Indian state to implement State VAT? → Haryana (in 2003)
☛ Which Article of the Indian Constitution governs the establishment of the GST Council? → Article 279A
☛ Who acts as the ex-officio Chairperson of the GST Council? → Union Finance Minister