Question

Q. Consider the following statements with regards to the Goods and Services Tax (GST):

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 2 and 3 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

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.