Which of the following has amalgamated a large number of central and state taxes and cesses?
Show answer & explanation
Correct answer: A
Explanation
The Goods and Services Tax (GST) is a significant reform in India's indirect tax system. It was implemented across the entire country on July 1, 2017. Prior to the implementation of GST, the Central and State governments levied various distinct types of taxes. GST integrated taxes such as VAT, Service Tax, Excise Duty, Entry Tax, Luxury Tax, etc. Its primary objective was to establish a "One Nation, One Tax" system throughout the country. This made the tax regime simpler and more transparent, while also reducing the cascading effect (double taxation) of taxes. Therefore, the correct answer is Goods and Services Tax (GST).