Question

Which of the following is an indirect tax in India?

• A. Income tax
• B. Wealth tax
• C. Goods and Services Tax
• D. Property tax

Hint:

Examples of Direct Taxes:

• Income Tax

• Property Tax
Examples of Indirect Taxes:

• Goods and Services Tax (GST)

• Customs Duty

Answer 1

The Correct Option is C

Concept: Taxes are broadly classified into Direct Taxes and Indirect Taxes. A direct tax is paid directly by the taxpayer to the government, whereas an indirect tax is collected through the sale of goods and services and is ultimately borne by the consumer. Step 1: Understand the tax types.

• Income Tax -- Direct tax.

• Wealth Tax -- Direct tax (abolished in India).

• Goods and Services Tax (GST) -- Indirect tax.

• Property Tax -- Direct tax.

Step 2: Analyse the options.

• Income tax -- Incorrect.

• Wealth tax -- Incorrect.

• Goods and Services Tax -- Correct.

• Property tax -- Incorrect.

Step 3: Final conclusion.
Hence, the indirect tax among the given options is \[ \boxed{\text{Goods and Services Tax (GST).}} \]