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    Question

    In which of the following years was the Goods and

    Services Tax (Compensation to States) Bill passed?
    A 2007 Correct Answer Incorrect Answer
    B 2014 Correct Answer Incorrect Answer
    C 2017 Correct Answer Incorrect Answer
    D 2002 Correct Answer Incorrect Answer

    Solution

    The GST (Compensation to States) Bill was passed in 2017 to ensure states are compensated for any revenue losses due to the introduction of GST. Key Points: 1. GST was implemented on July 1, 2017. 2. It subsumed indirect taxes like VAT, excise, and service tax. 3. Compensation is provided for five years from 2017. 4. Ensures smooth transition to a unified tax regime. 5. It is a landmark reform in indirect taxation in India. Bee Facts: • 2007 (a): Proposed during UPA government discussions. • 2014 (b): BJP began the legislative process for GST. • 2017 (c): GST Act enacted. • 2002 (d): Not related to GST reforms.

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