Exams › SSC CGL (Prelims) › General

Assertion (A): GST created a unified tax system. Reason (R): It replaced multiple indirect taxes. Which of the following is correct?

1. Both A and R are true and R explains A
2. Both true but R not explanation
3. A true, R false
4. A false, R true

Correct answer: Both A and R are true and R explains A

Solution

GST unified the indirect tax structure by subsuming several central and state taxes into one system. Since replacing multiple indirect taxes is exactly why it created a unified tax system, both statements are true and the reason explains the assertion.

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