SSC CPO 2025 PYQ — Question 100

Answer: Excise Duty

Explanation:

An indirect tax is a tax where the burden does not fall upon the individual who pays it to the government; rather, it is shifted to the final consumer. Excise duty is levied on the manufacture of goods, and the consumer pays it at the time of purchasing the goods. Conversely, income tax, corporate tax, and property tax are direct taxes because they are levied directly on an individual's or company's income/wealth, and their burden cannot be shifted to any other person. Currently, most indirect taxes (including excise duty) have been subsumed under the GST, although excise duty remains applicable on petroleum products and alcohol.

Additional Points:

Corporate Tax: This is a direct tax levied on the net profits of companies.

Progressive Tax: Direct taxes (such as income tax) are typically progressive in nature (meaning the tax rate increases as income rises).

GST: This came into effect on July 1, 2017, and is based on the concept of 'One Nation, One Tax.'

Potential Exam Questions and Answers:

Question: Under which ministry does the 'Central Board of Direct Taxes' (CBDT) function in India?

Answer: Ministry of Finance.

Question: On the recommendation of which committee was the GST implemented in India?

Answer: Vijay Kelkar Committee.