GST is described as what in the taxation framework?

• A. A main type of federal tax
• B. A local tax
• C. A discretionary levy
• D. A corporate expense

Answer: (A)

GST is a broad-based consumption tax collected at the federal level to fund government services. It operates as a value-added tax on most goods and services sold domestically, with businesses acting as collectors who remit the tax to the government (often after offsetting the GST they’ve paid on their own purchases). This makes GST a federal tax, not a local one, and not a discretionary levy. It isn’t a corporate expense—the tax is charged to consumers and passed through by businesses to the government, though businesses handle administration and credits for inputs.