Q. Consider the following statements with regards to Goods and Services Tax (GST):
Select the correct answer using the codes given below:
A
1 and 2 only
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B
2 and 3 only
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C
3 only
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D
1, 2 and 3
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Solution
The correct option is C 3 only
Explanation:
Statement 1 is incorrect. GST is a destination-based taxation system rather than being origin-based. It means that GST is levied in the territory where goods or services have been imported for consumption.
Statement 2 is incorrect. The GST council is the authorized body to make changes in the tax rates of goods and services under GST and not the parliament.
Statement 3 is correct. Exports under GST are Zero-rated. The exporter may supply goods or services or both after paying the amount of IGST and can claim a refund of the amount of tax paid on such goods or services or both.