Goods and Services Tax — GST is a compendious tax levy on the manufacture, sale and consumption of goods and services at a national level. It is considered as countries biggest tax reform. The Government of India is committed to implementing GST by April 2017. It is the horizontal and vertical integration of most of the indirect taxes at the union and state levels. The implementation of GST replaces other taxes such as Central Sales Tax, State-level sales tax, telecom license fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, thus cascading effects of taxation that currently exist in Indi and improves competitiveness. This measure is expected to minimize business transaction costs and make it easier for foreign companies to do business in India.
Under GST, the taxation burden is divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and decreasing the exemptions. It is expected to help build a transparent and corruption-free tax administration. GST is levied only at the destination point, and not at various points.
Consider the following statements
- Goods and Services Tax is levied only at the destination point, and not at various points.
- The Government of India is committed to implementing GST by April 2017.
Which of the following statements is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2