What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:

1. Statement 1 is correct. A primary objective and advantage of implementing the 'Goods and Services Tax (GST)' was to subsume most of the indirect taxes levied by the Centre and States (like excise duty, service tax, VAT, etc.) into a single, unified tax. This simplification was intended to eliminate cascading effects and reduce tax barriers across states, thereby helping to create a single market in India. 2. Statement 2 is incorrect. While GST can improve economic efficiency and potentially boost exports over time, it is unlikely to *drastically reduce* the 'Current Account Deficit' (CAD) on its own. CAD depends on various factors like imports, exports, remittances, and capital flows. Similarly, its direct impact on increasing foreign exchange reserves is not a primary or guaranteed outcome. 3. Statement 3 is incorrect. While GST is expected to contribute positively to economic growth by improving efficiency and formalization, claiming it will *enormously increase* the growth and size of the economy to the extent that India will overtake China in the near future is an overstatement and speculative. Economic growth depends on numerous factors, and GST is just one element. 4. Therefore, only statement 1 represents a most likely advantage of GST.