Question

Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs).
Which one of the following statements can be inferred from the given passage?

• A. GST is imposed on the production of goods and services.
• B. GST does not have a component specific to UT.
• C. GST is imposed at the point of usage of goods and services.
• D. GST includes all indirect taxes.

Answer 1

The correct option is C GST is imposed at the point of usage of goods and services.

According to passage, GST is imposed on the supply of goods and services, hence option (a) is incorrect which states that GST is imposed on production of goods and services.

In the passage, it is mentioned that GST has a two components specific to UTs. So option (b) is incorrect.

Passage states that GST is a destination based tax which means it is imposed at the point of usage of goods and services. Hence (c) is correct.

Option (d) says GST includes all indirect taxes but as per passage it subsumes all indirect taxes except few.