Question

An example of a destination state based tax is _______.

• A.
  
  Income Tax
  
• B.
  GST

Answer 1

The correct option is B

GST
Destination based tax or consumption tax are levied where goods and services are consumed. So as per current tax rules, the SGST collected will generally accrue to the State where the consumer of the goods or services sold resides and not to the State where the goods are produced.