Correct Answer - Option 3 : II, III, I, IV
The correct descending order is II, III, I, IV.
- In the financial year 2015-16, Corporation tax had the highest contribution in tax revenue for the Central Government in India. It was followed by Income Tax, Union Excise Duty and the Service Tax.
- The Constitution (101st Amendment) Act, 2016 introduced the Goods & Services Tax (GST), a comprehensive indirect tax levied on manufacture, sale, and consumption of goods as well as services at the national level.
- GST is a destination-based tax, i.e. they are levied where goods and services are consumed.
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The Centre would levy Central GST (CGST) and States would levy State GST (SGST) on every supply of goods and services within the state. Integrated GST (IGST) would be levied on all inter-state supplies by the Centre and then transferred to the Destination state.
- At the Central level, the following taxes are being subsumed:
- Central Excise Duty.
- Additional Excise Duty.
- Service Tax
- Additional Customs Duty commonly known as Countervailing Duty, and
- Special Additional Duty of Customs.
- At the State level, the following taxes are being subsumed:
- Subsuming of State Value Added Tax/Sales Tax,
- Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
- Octroi and Entry tax,
- Purchase Tax,
- Luxury tax, and
- Taxes on lottery, betting and gambling.
