Q. Consider the following statements in reference to Goods and Service Tax (GST)?
Which of the statements given above is/are correct?
Explanation:
Statement 1 is correct. GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.
Statement 2 is incorrect. Cess (education, Krishi Kalyan, Swachh Bharat) and surcharges charged by the centre are currently not part of GST.